UC-NRLF 


$C    3D    QMS 


GIFT   OF 


GENERAL     LAWS 


OF  THE 


State  of  Vermont 


RELATING  TO 


BANKS 


PUBLISHED    BY     AUTHORITY. 


CHAPTER  26— TITLE  2  7.— Public  Statutes. 
IN   FORCE  AUGUST  1,  1907. 


Concord,  N.  H. 

Rumfokd  Printing  Company. 

1907 


CHAPTER  26. 

BANK  COMMISSIONER. 
1906,  No.  203,  §  i.        Sec.  397.     Appointment;  term.     A  bank  commissioner  who 

1904,  No.  20,   S   -.  i      ii         ,   >  .       i  i      i   i  co  •  ,         , 

v.  s.  §  291.  shall  not  be  a  stockholder  or  officer  in  a  savings  bank,  trust  com- 

1874,'  No2°8T,  §  4.     Pan.v  or  Jo;m   ;ul^  '" Vl'sl ""'nl   company,  shall   be  bienially  ap- 
?860  No?  5$'  §  18.    IH'nit('11  °y  tne  governor,  with   the  advice  and  consent  of  the 

senate  and  shall  hold  his  office  until  his  successor  is  so  appointed 

and  qualified, 
v.  s.  s  292.  Sec.  398.     State  treasurer's  accounts.      Said  commissioner 

G.  s.  8,  §  66.  shall  assist  the  auditor  of  accounts  in  his  annual  examination  of 

i860.  No.  53,  §  is.    tjle  department  of  the  state  treasurer  and  shall  examine  minutely 

the  state  treasurer's  accounts  in  order  to  ascertain  the  correctness 

of  his  reports  and  whether  the  accounts  are  properly  kept, 
v.  s.  §  293.  Sec.  399.     Auditor's   books,   etc.     Said   commissioner   shall 

G.  s"  s.  i°66  annually  examine  the  books  and   papers  of  the  auditor  of  ac- 

1860,  No.  53,  §  IS.     eountS. 

v.  s.  §  294.  Sec.  400.     Examinations  of  banks.     If  the  treasurer  of  a 

'  *  °"      '  5      '    saving's  ,  bank,    savings'    institution    or    trust    company    fails    to 

report   as   required  by  law,   said   commissioner  shall   forthwith 

examine  the  affairs  of  such  corporation  and  make  a  statement  of 

its  condition,  which  shall  be  embodied  in  his  report. 

1902,  No.  72,  §§  4,      Sec.  401.     Loan,    investment   and   trust   companies.     Said 

v.  s.  §  295.  commissioner  shall  perform  the  duties  imposed  upon  him  by  law 

1890,  No.  4.  in  relation  to  loan,  investment  and  trust  companies. 

v.  s.  §  296.  Sec.  402.    Report.   Said  commissioner  shall  biennially  report 

is7s\  No"  i.'  §  2.      1"  the  general  assembly  the  result  of  his  examination  of  the  de- 

i'si;u,  n,,§  53,'  5  is.    partment  of  the  state  treasurer,  and  of  the  books  and  papers  of 

the  auditor  of  accounts.     He  shall  also  report  the  condition  of, 

and  any  violations  of  law  by  savings  banks,  trust  companies  and 

loan  and  investment  companies,  which  shall  embody  the  reports 

of  such  corporations  made  to  him  during  the  preceding  two  years 

and  a  statement  of  his  action   relative  thereto,   and  any  other 

pertinent  information  or  suggestions. 

i9oo,  No.  n.  §  i.  Sec.  403.     Distribution  of  report.     Said  commissioner  shall 

V    S    $  *>97 

ri.  l'.  s  211!  annually  cause.to  be  published  For  general  distribution,  not  more 

3878,  No.  1,  §  2.      th.an  fifteen  hundred  copies,  of  the  reports  made  to  him  during 
the  pr'efc'efftng  yc.a!F,'     , :   : 


TITLE  27. 

BANKS. 

Chapter  197. — Savings   banks,   savings   institutions   and   trust- 
companies. 
Chapter  198. — Trust  companies  may  act  in  fiduciary  capacities. 
Chapter  199. — Loan  and  investment  companies. 
Chapter  200. — Cooperative  savings  and  loan  associations. 
Chapter  201. — Foreign  building  and  loan  associations. 


CHAPTER  197. 

SAVINGS  BANKS,  SAVINGS  INSTITUTIONS  AND 
TRUST  COMPANIES. 

Sections  4615-4617.— Officers. 

Section'  461S. — Members. 

Sections  4619,4620. — Meetings  and  by_13^nom 

Sections  4621-4625.— Trustees.  Ow.)«/4 

Sections  4626-4628. — Treasurer's  bond. 

Section  4629. — Security  from  officers. 


892 


MEMBERS. 


[Title  21 


Sections  4630,  4631— Reports  to  bank  commissioner. 
Sections  4632-4642.— Deposits. 
Sections  4643-4646.— List  of  depositors. 
Section  4647.— Examination  of  deposit  books. 

Sections  4648-4661.— Investments  and  loans. 
Sections  4662-4668.— Dividends  and   surplus. 
Sections  4669-4672.—  Reducing  deposits  in  an   insolvent   insti- 
tution. 
Sections  4673,  4674. — Inspection. 

Sections  4675-4679. — Closing  up  affairs  for  breach  of  law. 
Sections  46S0,  4681.— Safe  deposit  boxes. 
Sections  4682-4686.— Miscellaneous. 


1906,  No.  1ST. 
1000,  No.  52, 
V.  S.  §  40G6. 
1884,  No.  41. 
R.  L.  §  3558. 
1878,  No.  1.  § 
1872,  No.  22. 
G.  S.  86,  §  37. 
1857,  No.  42, 
74   Vt.  246. 


§    I. 
§   1. 

§  1. 


§  1. 


V.    S.  S  4067. 

1884,  No.    41, 

Hi. 

1882,  No.   73. 

R.   L.  §  3559. 

1878,  No.  1,  § 


V.   S.   S   4i ills. 
1884,   No.   4U. 


V.  S.  §  4069. 

1884,  No  41,  §  3. 

It.  1,.  8  3560. 

1S7S.  No.  I,  S  8. 


Officers. 

Sec.  4615.  Number;  disqualifications.  The  officers  of  a 
saving's  bank  or  savings  institution  shall  be  a  president,  one  or 
more  vice-presidents,  a  board  of  trustees  of  not  less  than  seven 
nor  more  than  eleven,  a  treasurer  who  shall  also  be  clerk,-  and 
such  other  officers  as  are  necessary  for  the  management  of  its 
affairs.  The  president,  vice-president  and  trustees  shall  be 
elected  from  the  members  of  the  corporation;  and  no  person 
shall  hold  office  in  two  such  corporations  at  the  same  time;  and 
no  president,  vice-president,  treasurer  or  assistant  treasurer  of 
such  corporation  shall,  at  the  same  time,  hold  office  as  president, 
vice-president,  cashier  or  assistant  cashier  in  a  national  bank  of 
discount,  or  a  trust  company  within  this  state;  nor  shall  a  major- 
ity of  the  trustees  of  any  such  corporation  be  directors  in  the 
same  national  bank  or  trust  company. 

Sec.  4616.  Election;  appointment.  The  officers  of  a  sav- 
"'ings  bank,  savings  institution  or  trust  company  shall  be  sworn 
before  entering  upon  the  duties  of  their  respective  offices,  and 
shall  hold  office  until  their  successors  are  elected  and  qualified, 
and,  except  the  treasurer,  assistant  treasurer  .and  clerks,  shall  be 
chosen  at  the  annual  meetings  of  such  corporation,  holden  pursu- 
ant to  the  by-laws.  The  treasurer,  assistant  treasurer  and  clerks 
shall  be  appointed  by  the  trustees  and  shall  hold  office  during 
their  pleasure.  The  trustees  may  fill  vacancies  until  the  nexl 
nual  meeting;  and  if  a  person  elected  or  appointed  to  an  offie< 
does  not  qualify  within  twenty  days  thereafter,  his  office  shall 
be  vacant. 

Sec.  4617.     Record  certified  by  president,  etc.     "When  the 
treasurer  of  a  savings  bank,  savings  institution  or  trust  company 
holds  the  office  of  secretary  or  clerk,  the  records  of  such  corpora- 
tion shall  be  countersigned  and  attested  by  the  president,  or 
a  director  or  trustee  appointed  for  that  purpose. 

Members. 

Ski.  4618.     Election;  withdrawal.     A  savin  or  sa^ 

ings  institution  may.  at  a  legal  meeting,  eleel  >>.\   ballol  any  citi 

zen  of  this  state  to  be  a  member  thereof;  but  the  numbei  m 

bers  of  such  corporation  shall  not  exceed  fifty.     A  person  may, 
at  an  annual  meeting,  withdraw    from  membership  by  filing  a 


Chap.  197.]  TRUSTEES.  893 

written  notice  of  his  intention  so  to  do,  with  the  treasurer,  three 
months  at  least  before  such  meeting.  No  person  shall  continue 
to  be  a  member  after  removing  from  the  state. 

Meetings  and  By-Laws. 

Sec.  4619.     Meetings.     Such  savings  bank  or  savings  insti- v.  s.  s  4070. 
tution  may,  at  any  time,  hold  special  corporators'  meetings  by  r.  i,;  1*3561'  *  4' 
order  of  the  board  of  trustees;  and  the  treasurer  shall  notify  1S7S'  No-  *•  $ '■ 
special  meetings  upon  the  written  request  of  ten  members  of  the 
corporation.     Six  days'  notice  of  meetings  shall  be  given  by 
publication  in  a  newspaper  of  the  county  where  the  corporation 
is  located  or  by  written  or  printed  notice  mailed  to  each  member 
of  such  corporation. 

Sec.  4620.     By-laws.     Savings  banks   and  savings   institu-v.  s.  §  4071. 
tions  may  adopt  by-laws  for  their  government,  not  inconsistent  r.  l'  g  3562'  §  5' 
with  law.  1878>  No-  *•  ■  4 

Trustees. 

Sec.  4621.     General  duties;  committees.     The  trustees  shall  v.  s.  §  4072. 
have  the  general  management  of  the  affairs  of  the  corporation ;  rS8l|  g^oex  §  G' 
but  they  may  act  through  committees  of  investment,  examination  1S7S'  *"■  1-  §  °- 
and  audit,  subject  to  their  general  supervision  and  control. 

Sec.  4622.     Meetings ;  quorum.     A  regular  meeting  of  the  v.  s.  §  4117:: 
board  of  trustees  of  a  savings  bank  or  savings  institution  shall  }i.st.  suir.r.V  * 
be  held  at  least  once  in  three  months  to  receive  the  report  of  its 1S7S-  No-  *■  *  ■' 
treasurer  and  for  the  transaction  of  other  business.     A  majority 
of  the  trustees  shall  constitute  a  quorum,  but  a  less  number  may 
adjourn  from  time  to  time,  or  until  the  next  regular  meeting. 

Sec.  4623.  Treasurer's  statement;  report  of  auditors.  Atv  S.  s  4074. 
least  once  a  month,  and  at  each  regular  meeting,  the  treasurer  k.  l!  s°3564]  s 
shall  prepare  a  statement  showing  the  condition  of  the  corpora- 
tion, in  the  form  of  a  trial  balance,  which  shall  be  recorded  in  a 
book  kept  for  that  purpose,  and  shall,  at  all  times,  be  open  to  the 
inspection  of  the  trustees  and  the  bank  commissioner.  A  record 
shall  be  made  at  each  meeting  of  the  transactions  of  the  board 
and  the  names  of  the  trustees  present.  The  trustees  shall  cause 
a  thorough  examination  and  report  in  detail  of  the  assets  and 
liabilities  of  such  corporation  to  be  made  to  them,  at  least  once 
in  six  months,  by  a  committee  or  board  of  auditors  of  not  less 
than  three  of  their  number,  and  the  same  shall  be  recorded  in 
the  book  containing  the  record  of  such  trial  balances. 

Sec.  4624.     Compensation  of  officers.     The  trustees  shall  v.  s.  §  4075. 
fix  the  compensation  of  other  officers  of  the  corporation,  and  shall  J88/,!  f  3565!  5 
receive  such  compensation  for  their  services  as  is  fixed  by  the  1S78,  No-  *•  §  9- 
corporation  at  a  legal  meeting. 

Sec.  4625.     Officers  not  to  borrow  or  use  funds  of  bank.  v.  s.  8  4076. 
A  trustee  or  officer  of  a  savings  bank  or  savings  institution  shall  r.  l!  i  3566'. 
not,  directly  or  indirectly,  either  for  himself  or  as  the  partner  1878,  Xo'  *'  §  9' 
of  others,  borrow  or  use  its  funds  or  deposits,  or  sign  any  note, 
as  surety,  upon  which  any  of  such  deposits  are  loaned. 


894  REPORTS    TO    BANK   COMMISSIONER.         [Title  27. 

Treasurer's  Bond. 

lssl;  No40!!,'  §  n        Sec-  4626-     Requirements.     The    treasurer    of    a    savings 
1878'  L^5i7'§  10     bank'  savings  institution  or  trust  company,  before  entering  upon 
g.  s.'  s<£'§  bo.^    '     the  duties  of  his  office,  shall  execute  to  such  corporation  a  bond 
with  sufficient  sureties  to  be  approved  in  writing  upon  such 
bond,  by  a  majority  of  the  trustees  or  directors,  conditioned  for 
the  faithful  discharge  of  his  duties.     Such  bond  shall  not  be  less 
than  ten  thousand  dollars;  and,  when  the  deposits  of  such  cor- 
poration, including  its  capital,  if  any,  exceed  the  sum  of  one 
hundred  thousand  dollars,  the  penal  sum  of  such  bond  shall  be 
increased  two  thousand  dollars  for  each  additional  sum  of  one 
hundred  thousand  dollars,  or  fractional  part  thereof,  but  shall 
not  exceed  one  hundred  thousand  dollars, 
lssf;  No40li,'  §  12.       Sec>  4627-     Bank  commissioner  to  keep.     The  bond  of  a 
fsso  x,;;r'i''i    5  3    treasum'  of  a  savings  bank,  savings  institution  or  trust  company 
shall,  within  twenty  days  after  his  election  or  appointment,  be 
deposited  with  the  bank  commissioner. 
y.  s.  S  4079.  Sec.  4628.     Bank  commissioner  to  examine;  new  bonds. 

ISM.  No.  -41,  S   10.     rm       ii  •  i     ii  n 

r._l.  s  3569  J- he  bank  commissioner  shall  annually  examine  the  bonds  of  the 

'  1-  *  10-  treasurers  of  the  several  savings  banks,  savings  institutions  and 
trust  companies,  and  shall  inquire  into  and  certify  to  the  suffi- 
ciency thereof,  and,  when  he  deems  a  bond  insufficient,  shall 
order  a  new  bond  to  be  filed  within  a  reasonable  time  limited  by 
him ;  and,  if  a  new  bond  is  not  furnished  to  his  satisfaction  within 
such  time,  the  office  shall  be  vacant,  and  a  new  treasurer  shall  be 
appointed. 

Security  from  Officers. 

mt  no4°«  s  n        Sec.  4629.     Trustees  may  demand.     The  trustees  of  such 
R.  l!  §  357o'.  "  ^  '   corporation  may  require  from  any  other  officer,  clerk  or  agent 

thereof,  such  security  for  the  faithful  performance  of  his  duties 

as  they  deem  necessary. 

Reports  to  Bank  Commissioner. 
ioaS'  v°-  SS1  I  lb        Sec-  4630.     Treasurer's    report.     The    treasurer    of    every 

i;to_,  r\o.  jo,  §    f2.  ■  ■,-....  v 

v.  s.  §4081.  _  savings  bank,  savings  institution  and  trust  company  shall  annu- 
k.  l!  s  3571.  "  ally,  on  or  before  the  tenth  day  of  July,  make  a  report  to  the 
a87!.'  86° V'l's  l  bank  commissioner,  showing  accurately  the  condition  thereof  as 
is3i,  No.  so.  |i.  it  was  at  the  close  of  business  on  the  thirtieth  day  of  June  pre- 
ceding; and  such  report  shall  embrace  the  following  particulars: 
name  of  corporation;  place  where  located;  amount  of  deposits; 
amount  of  individual  deposits  in  excess  of  two  thousand  dollars ; 
total  number  of  depositors;  number  of  depositors  resident  in  this 
state  and  the  total  amount  of  their  deposits ;  number  of  depositors 
not  resident  in  this  state  and  the  total  amount  of  their  deposits; 
amount  of  capital,  if  any;  amount  of  each  item  of  other  liability  ; 
public  funds,  including  United  States,  state,  county,  town  and 
other  municipal  bonds,  stating  each  particular  kind,  the  par  value, 
estimated  market  value  and  amount  invested  in  each  ;  bank  stock, 
stating  name  and  location  of  bank,  number  of  shares,  par  value, 
estimated  market  value  and  amount  invested  in  each;  loans  on 


Chap.  197.]  DEPOSITS.  895 

bank  stock,  slating  amount  on  each;  railroad  bonds,  stating  name 
of  railroad,  par  value,  estimated  market  value  and  amount  in- 
vested in  each;  loans  on  railroad  bonds,  stating  amount  on  each; 
other  stocks,  stating  the  amount  of  each;  estimated  value  of  real 
estate  and  amount  invested  therein;  loans  on  mortgages  of  real 
estate,  stating  amount  in  this  state  and  amount  elsewhere;  loans 
to  cities,  towns,  villages  or  school  districts;  loans  on  personal 
security;  loans  on  collateral  security  other  than  those  above  men- 
tioned, describing  such  securities  and  the  amount  loaned  on  them 
severally;  cash  on  deposit  in  banks  or  trust  companies,  with  the 
name  thereof  and  the  amount  deposited  in  each;  cash  on  hand; 
the  rate  and  amount  of  each  semi-annual  or  extra  dividend  for 
1he  past  year;  the  amount  of  the  treasurer's  bond;  the  amount  of 
taxes  paid  during  the  past  year  to  the  United  States  and  to  this 
state;  the  salary  of  the  treasurer;  and  other  expenses  for  the 
past  year;  all  of  which  shall  be  certified  and  sworn  to  by  the 
treasurer. 

Sec.  4631.     Same;  penalty  for  not  making;  examination,  v.  s.  §  4082. 
If  the  treasurer  of  a  savings  bank,  savings  institution  or  trust  r88l:  j"  3572!  §  1G' 
company  fails  to  report  to  said  commissioner  as  heretofore  pro- q87|;  |e°- ^J  :: 
vided,  he  shall  forfeit  for  each  offense  the  sum  of  one  thousand  1^31.  x°-  5'J.  §  2. 
dollars,  to  be  recovered  in  an  action  on  the  ease  in  the  name  of 
the  state  founded  on  this  statute;  and  said  commissioner  shall 
annually,  on  or  before  the  twenty-fifth  day  of  July,  upon  the  neg- 
lect of  said  treasurer,  examine  the  affairs  of  such  corporation  and 
make  a  statement  of  the  condition  thereof  in  respect  to  the  par- 
ticulars specified  in  the  preceding  section,  to  be  embodied  in  his 
reports. 

Deposits. 

Sec.  4632.     Limit ;  interest.     A  savings  bank  or  savings  in-  v.  s.  §  4083. 
stitution  may  receive  on  deposit,  for  the  use  and  benefit  of  depos-  j^t.  fV-k  §  17' 
itors.  sums  of  money  offered  for  that  purpose,  but  shall  not  ffivt^zie'  §  "' 
receive  from  the  same  depositor,  directly  or  indirectly,  over  two 
thousand  dollars;  and  no  interest  or  dividend  shall  be  paid  to 
any  one  depositor  for  an  amount  of  deposit  over  such  sum,  except 
for    deposits    by    widows,    orphans,    administrators,    executors, 
guardians,  charitable  or  religious  institutions,  and  as  trust  funds 
by  order  of  court.     The  trustees  may  refuse  a  deposit  in  their 
discretion,  and  may  also,  at  any  time,  return  all  or  part  of  a 
deposit. 

Sec.  4633.     Regulations  as  to  withdrawal.     The  sum  so  de-  v.  s.  §  4084. 
posited,  with  the  dividends  or  interest  credited  thereto,  may  be  r88,4,;  j0^'.  §  18' 
withdrawn    by   such    depositors   or   their  legal    representatives,  ^TS.-t  ^g1-  §  "• 
under  such  regulations  as  to  time,  manner  and  previous  notice 
as  the  board  of  trustees  prescribes ;  and  such  regulations  shall  be 
posted  conspicuously  in  the  room  where  the  business  of  such  cor- 
poration is  transacted  and  be  printed  in  the  passbooks  or  other 
evidences  of  deposit  furnished  by  the  corporation,  and  shall  be 
evidence  between  the  corporation  and  the  depositors  holding  the 
same  of  the  terms  upon  which  the  deposits  therein  acknowledged 
are  made. 


896 


DEPOSITS. 


[Title  27. 


1904,  No.   100, 


1904,  No.  100,   § 


1004,  No.  100,  § 


1898,  No.  53, 
V.  S.  §  4085. 
1894,  No.  02. 


V.  S.  §  40SG. 

3  884,  No.  41,  §  19. 

R.  L.  §  3575. 

1878,  No.  1,  S  12. 


V.  S.  $  4087. 
1884,  No.  41.  5  20. 
R.  I..  §  3576. 
G.  S.  86,  §  38. 
1858,  No.  26,  §  1. 


Sec.  4634.  Loss  of  deposit  book.  When  the  deposit  book 
of  a  depositor  in  a  savings  banks,  savings  institution  or  trust 
company,  is  lost  or  destroyed  and  the  depositor  desires  to  obtain 
a  new  book,  he  shall,  if  the  bank  so  requires,  advertise  the  loss  or 
destruction,  giving  the  date  and  number  of  the  book,  in  two  news- 
papers, one  published  in  the  vicinity  of  the  residence  of  the  de- 
positor and  the  other  in  the  vicinity  of  the  place  of  business  of 
the  savings  bank,  savings  institution  or  trust  company,  at  least 
three  weeks  successively ;  and  a  notice  of  the  loss,  with  a  descrip- 
tion of  the  book,  shall  be  posted  in  the  office  of  the  savings  bank, 
savings  institution  or  trust  company  for  the  same  length  of 
time. 

Sec.  4635.  Same;  new  book.  If  no  other  person  makes 
claim  to  the  book  or  to  the  deposit  within  three  months  after  such 
publication  and  notice,  the  savings  bank,  savings  institution  or 
trust  company  shall  issue  to  the  depositor  a  new  book,  which  shall 
contain  a  complete  statement  of  the  depositor's  account,  and  shall 
state  that  it  is  issued  in  lieu  of  the  one  lost  or  destroyed ;  and  the 
savings  bank,  savings  institution  or  trust  company  shall  not  be 
liable  thereafter  on  account  of  the  original  book. 

Sec.  4636.  Proceedings  in  chancery  when  book  is  lost  or 
bank  refuses  to  issue  new  book.  If  a  person  claims  such  book, 
deposit  or  any  interest  therein  by  virtue  of  such  original  book 
before  a  new  one  is  issued,  or  if  the  savings  bank,  savings  insti- 
tution or  trust  company  refuses  to  issue  a  new  book,  a  person  in- 
terested may  petition  the  court  of  chancery  for  relief;  and  such 
court  may,  upon  notice  and  hearing,  in  a  summary  manner,  make 
such  order  in  the  premises  as  the  case  requires. 

Sec.  4637.  May  be  paid  to  foreign  administrator.  "When  a 
deposit  is  made  in  a  savings  bank,  savings  institution  or  trust 
company  by  a  person  residing  in  another  state  or  country,  the 
deposit,  or  any  part  thereof,  with  the  dividends  or  interest 
thereon,  may  be  paid  to  the  administrator  or  executor  appointed 
in  the  state  or  country  where  the  depositor  resided  at  the  time 
of  death,  provided  no  administrator  or  executor  has  been  ap- 
pointed in  this  state  at  the  time  of  such  payment. 

Sec.  4638.  Trust  deposits;  payment  if  trustee  dies.  When 
a  deposit  is  made  in  a  savings  bank,  savings  institution  or  trust 
company  by  a  person  in  trust  for  another,  the  name  and  residence 
of  the  person  for  whom  the  deposit  is  made  shall  be  disclosed, 
and  the  deposit  shall  be  credited  to  the  depositor  as  trustee  for 
such  person ;  and  when  no  other  notice  of  the  existence  and  terms 
of  a  legal  trust  is  given  in  writing  to  the  corporation,  at  the  death 
of  the  trustee,  the  deposit,  or  any  part  thereof,  with  the  dividends 
or  interest  thereon,  may  be  paid  to  the  person  for  whom  the  de- 
posit was  made. 

Sec.  4639.  Payment  to  minors.  The  trustees  of  a  savings 
bank,  savings  institution  or  trust  company  may,  in  their  dis- 
cretion, pay  to  a  minor  such  sum  as  is  deposited  to  the  credit  of 
such  person,  and  is  due,  as  if  such  minor  were  of  age;  and  the 
check  and  receipt  or  acquittance  of  such  minor  shall  be  a  full 
discharge  for  the  amount  for  which  it  is  given. 


Chap.  197.]  LIST   OF   DEPOSITORS.  897 

Sec    4640.     Minor's  deposits  exempt  from  trustee  process,  v.  s.  §  4088. 

.  ■  •       ,-,     .-  j.  i     li    i      1884,  No.  41,  §   21. 

No  savings  bank,  savings  institution  or  trust  company  snail  be  r.  l.  §3577. 
chargeable  as  trustee  on  account  of  funds  deposited  to  the  credit  fg3|;  ff^  s2f,9'|  2. 
of  a  minor,  provided  such  funds  are  earned  by  or  belong  to  such 
minor. 

Sec.  4641.     Provisions  when  title  to  deposit  is  litigated.]:    tooe,  §4543. 
Io  actions  a^amst  a  savings  bank,  savings  institution  or  trust  ism,  xo.  41,  s  -2-2. 
company  by  a  husband  to  recover  for  moneys  deposited  by  his  i'ki4'.  No.  l,  §  13. 
wife  in  her  name  or  as  her  money,  the  wife  may  be  a  witness  as  68  N '  494- 
if  she  were  an  unmarried  woman.     And  in  actions  against  such 
corporation  to  recover  for  moneys  on  deposit,  if  there  is  a  person, 
whether  married  or  not,  claiming  the  same  fund,  who  is  not  a 
party  to  the  action,  the  court,  on  the  petition  of  such  corporation 
and  on  such  notice  as  it  considers  proper  to  the  plaintiff  and 
such  claimant,  may  order  the  proceedings  to  be  amended  by 
making  such  claimant  a  party  defendant;  and  the  court  shall 
thereupon  hear  and  determine  the  rights  and  interests  of  the 
parties  to  such  action  in  and  to  such  fund. 

Sec.  4642.  Same;  deposit  may  be  paid  into  court;  costs,  v.  S.  §  4000. 
The  deposits  which  are  the  subject  of  such  action  may  remain  r.  l!  s  3578'. 
with  such  corporation,  upon  the  same  interest  as  other  deposits 
of  like  amount,  until  final  judgment  therein;  and  the  same  shall 
be  paid  by  such  corporation  in  accordance  with  the  order  of  the 
court ;  or  the  deposits  may  be  paid  into  court  to  await  the  final 
determination  of  the  action ;  and,  when  so  paid  into  court,  the 
corporation  shall  no  longer  be  a  party  to  such  action,  and  its 
liability  for  such  deposits  shall  cease.  The  costs  in  such  action 
shall  be  in  the  discretion  of  the  court,  and  may  be  charged  upon 
the  fund  affected  thereby. 

List  of   Depositors. 

Sec.  4643.  Depositors  not  changing  deposits  for  ten  v.  s.  §  4091 
years;  publication.  The  treasurer  of  each  savings  bank,  sav-  1892J  No.  70,  §  1. 
ings  institution  and  trust  company  shall,  on  or  before  the  fif- 
teenth day  of  February,  nineteen  hundred  and  twelve,  and  every 
sixth  year  thereafter,  return  to  the  bank  commissioner,  under 
oath,  a  list  of  depositors  who  have  not  made  a  deposit  therein 
or  withdrawn  any  part  of  their  deposits  or  of  the  interest 
thereon,  for  a  period  of  ten  years  next  preceding;  and  the  treas- 
urer of  such  an  institution  shall  further  give  notice  by  publishing 
a  list  of  such  depositors  in  one  or  more  newspapers  published  in 
or  near  the  town  where  such  institution  is  located,  three  weeks 
successively. 

Sec.  4644.     Same;  exception.     The  preceding  section  shall  v  s.  §  4092. 
not  apply  to  deposits  which,  with  the  accumulation,  shall  be  less  lh 
than  twenty-five  dollars,  or  to  a  deposit  made  by  or  in  the  name 
of  any  person  known  by  the  officers  of  the  bank  to  be  living. 

Sec.  4645.     Report  by  bank  commissioner.     The  bank  com-  v.  s.  5  1003 
tnissioner  shall  incorporate  such  list  in  his  next  biennial  report.  I892,         '"'  * 

Sec.  4646.     Neglect  of  treasurer;  penalty.  If  said  treasurer  v.  s.  5   1094 
neglects  to  comply  with  a  provision  of  the  third  preceding  section. 1892,  N,>"  '"'  *  4' 


898  INVESTMENTS    AND    LOANS.  [Title  ±1 

he  shall  be  fined  not  more  than  one  hundred  dollars  nor  less  than 
twenty  dollars,  one-half  to  go  to  the  complainant  and  one-half 
to  the  state. 

Examination  of  Deposit  Books. 

v.  s.  g  4U0.-,  Sec.  4647.     Every  fifth  year.     In  the  year  nineteen  hundred 

1892|  No.  7i.  and  eight,  and  every  fifth  year  thereafter,  at  such  time  in  the 

year  as  the  bank  commissioner  shall  designate,  the  trustees  of 
savings  banks,  savings  institutions  and  trust  companies  shall 
call  in  the  deposit  books  for  examination  and  verification,  and 
cause  the  same  to  be  examined  and  verified  by  some  person,  other 
than  the  treasurer  or  his  clerks,  employed  for  that  purpose  and 
approved  by  said   commissioner. 

Investments  and  Loans. 

1904,  No.  98,  i  l.         Sec.  4648.     Mortgages ;  limited.     No  investment  of  deposits 
188V,  No.  is.'  and  surplus  by  savings  banks,  savings  institutions  and  trust  com- 

r88l!  §§°3579  S::5sb.  Pames  shall  be  made  upon  mortgages  of  real  estate,  except  upon 
1878,  No.  i,  §  n.  fjrst  mortgages  of  unencumbered  real  estate ;  and  the  amount 
of  such  investments  shall  not  exceed  three-fifths  of  the  cash 
value  of  the  property  mortgaged.  Not  less  than  one-sixth  of  the 
amount  of  such  mortgages  shall  be  upon  real  estate  in  this  state, 
and  not  more  than  eighty  per  cent  of  the  amount  of  the  assets 
shall  be  invested  in  mortgages  of  real  estate;  provided  that  not 
exceeding  sixty  per  cent  of  the  amount  of  such  assets  may  be 
invested  in  mortgages  of  real  estate  outside  of  this  state.  If 
the  investment  is  on  mortgages  of  unimproved  or  unproductive 
real  estate,  the  amount  of  such  investment  shall  not  be  more  than 
forty  per  cent  of  the  value  thereof ;  and  no  mortgage  investment 
shall  be  made  by  such  corporation  except  upon  the  written  ap- 
proval of  at  least  three  trustees  of  their  board  of  investment. 
1896,  No.  so,  §  i.  Sec.  4649.  Capital.  The  capital  of  trust  companies  and 
of  savings  bank  and  trust  companies  shall  be  subject  to  the  same 
laws  of  investment  as  are  applicable  to  their  surplus  and  deposits, 
v.  s.  §  4097.  Sec.   4650.     Insurance  on  buildings.     When  buildings  are 

it88r4!  §0358i'.  §  2i'  included  in  the  valuation  of  real  estate  upon  which  an  invest- 
1878,  No.  l.  §  14.  ment  is  made,  they  shall  be  insured  by  the  mortgagor  in  such 
company  as  the  trustees  or  board  of  investment  direct,  and  the 
policies  of  insurance  shall  be  duly  assigned,  or  the  loss  made 
payable  to  such  savings  bank,  savings  institution  or  trust  com- 
pany; and  such  savings  bank,  savings  institution  or  trust  com- 
pany may  renew  such  policy  of  insurance  in  the  same  or  in  an- 
other company,  as  said  trustees  or  board  of  investment  elect, 
from  year  to  year,  or  for  a  longer  or  shorter  period,  if  the 
mortgagor  neglects  so  to  do;  and,  when  necessary,  the  treasurer 
may  sign  premium  notes,  and  may  charge  the  amount  paid  for 
such  insurance  to  the  mortgagor. 
v.  s.  §  4098.  Sec.  4651.     Same;   renewal   charges   paid   by   mortgagor; 

1884,  No.^1,  §  -4.   jjen^     ,pjie  necessary  charges  and  expenses  of  such  renewal  shall 
1878,  No.  l,  §  14.     ])e  pai(j  hy  suc]i  mortgagor  to  such  savings  bank,  savings  insti- 
tution or  trust  company,  and  shall  be  a  lien  upon  the  property 
so  mortgaged,  recoverable  with  interest  semi-annually  from  the 


Chap.  197.]  INVESTMENTS   AND    LOANS.  899 

time  of  payment,  as  part  of  the  moneys  secured  by  such  mort- 
gage. 

Sec.  4652.     Personal  security;  limitation.     No  loans  or  in- 1906,  x0.  128,  §  l. 
vestments  on  personal  security  shall  be  made  except  upon  at  iss'i,  No.  a',  §  25. 
least  two  approved  names,  not  less  than  two  of  whom  reside  in  \%7l$]  n0.  1,  §  14. 
this  state  or  within  fifty  miles  of  the  institution  making  such  7S  vt  1G9- 
investment,  or  upon  notes  or  accepted  drafts  given  by  individ- 
uals, firms  or  corporations  residing  without  the  state  for  goods 
manufactured  within  the  state  and  payable  to  individuals,  firms 
or  corporations  located  within  the  state ;  and  such  personal  loans 
or  investments  shall  not  be  for  a  longer  time  than  one  year ;  and 
not  more  than  one-third  of  the  assets  of  the  savings  bank,  sav- 
ings institution  or  trust  company  shall  be  invested  in  personal 
securities. 

Sec.  4653.     Lot  and  building  for  business  of  corporation,  v   s.  g   1 

Five  per  cent  of  the  deposits  of  a  savings  bank,  savings  insti-  isst!  No!  «.,'  |  26. 
tution  or  trust  company  may  be  invested  in  the  purchase  of  a  f87g-  no^5i,3's  14. 
suitable  building  for  the  convenient  transaction  of  its  business, 
or  a  site  therefor  and  the  erection  or  repairs  of  a  building 
thereon,  from  portions  of  which,  not  required  for  its  use,  a 
revenue  may  be  derived. 

Sec.  4654.  Surplus  and  deposits  of  savings  institutions,  v.  s.  5  4101. 
With  the  foregoing  exceptions,  the  moneys  deposited  in  1  ss.il  No!  12! 
savings  banks,  savings  institutions  and  trust  companies.  ].8Sl;  |§°3584,'3585, 
and  the  income  therefrom,  shall  be  invested  only  as  fol-  18|S8No35i2i  si 
lows:  in  the  public  funds  of  the  United  States,  or  public  isso!  No!  122!  §§  i, 
funds  for  the  payment  of  principal  and  interest  of  which  theisms,  No.  1,  §  14. 
faith  of  the  United  States  is  pledged;  in  the  bonds  or  notes  of 
the  counties,  towns,  cities,  villages  and  school  districts  of  the 
New  England  states,  New  York,  Pennsylvania,  Ohio,  Michigan, 
Indiana,  Illinois  and  Iowa;  in  the  stock  of  any  national  bank  in 
the  New  England  states,  New  York  and  the  cities  of  Detroit, 
Chicago,  St.  Paul  and  Minneapolis ;  in  the  stock  of  any  banking 
association  or  trust  company  incorporated  under  the  authority 
of  and  located  in  this  state;  in  the  municipal  bonds,  not  issued 
in  aid  of  railroads,  of  counties,  towns  and  cities  of  five  thousand 
or  more  inhabitants  in  the  states  of  New  Jersey,  Wisconsin, 
Minnesota  and  Missouri,  and  in  counties,  towns  and  cities  of  ten 
thousand  or  more  inhabitants  in  the  states  of  Kansas,  Nebraska, 
North  Dakota,  South  Dakota,  Oregon  and  Washington,  but  no 
investment  shall  be  made  in  any  of  the  counties,  towns  or  cities 
in  the  states  above  named,  except  in  cities  of  fifty  thousand  or 
more  inhabitants,  where  the  municipal  indebtedness  of  such 
county,  town  or  city  exceeds  five  per  cent  of  its  assessed  valua- 
tion, and  when  not  issued  in  aid  of  railroads ;  in  the  school  bonds 
and  independent  school  district  bonds  of  New  Jersey,  Wiscon- 
sin, Minnesota  and  Missouri;  and  in  the  school  bonds  and  inde- 
pendent school  district  bonds  of  school  districts  of  two  thousand 
or  more  inhabitants  in  the  states  of  Kansas,  Nebraska,  North 
Dakota,  South  Dakota,  Oregon  and  Washington,  where  the 
amount  of  such  bonds  issued  does  not  exceed  five  per  cent  of  the 
assessed  valuation  of  the  respective  towns,  cities  and  school  dis- 


900  INVESTMENTS   AND    LOANS.  [Title  -27. 

tricts;  in  the  public  funds  of  any  of  the  states  named  in  this 
section ;  in  notes  with  a  pledge  of  any  of  the  aforesaid  securities, 
including  deposit  books  or  deposit  receipts,  issued  by  a  savings 
bank,  savings  institution  or  trust  company,  or  banking  asso- 
ciation located  in  this  state,  as  collateral,  such  notes  not  to  exceed 
the  par  or  market  value  of  such  security;  but  no  savings  bank, 
savings  institution  or  trust  company  shall  hold,  by  way  of  invest- 
ment or  as  security  for  loans,  more  than  ten  per  cent  of  the  capi- 
tal stock  of  any  one  bank,  nor  invest  more  than  ten  per  cent  of 
its  deposits,  nor  more  than  thirty-five  thousand  dollars  in  the 
capital  stock  of  any  one  bank;  and  no  such  investments  shall  be 
made  in  the  capital  stock  of  any  such  banks  owned  or  loaned 
upon,  to  exceed  in  the  aggregate  one-fourth  of  the  deposits  of 
any  savings  bank,  savings  institution  or  trust  company. 

11 xo.  53,  §  i.         Sec.  4655.     Limit  of  loans  on  personal  security.     No  sav- 

1SS4!  KcJtt,'  §  28.  mgs  bank,  savings  institution  or  trust  company  shall  loan  to  any 
one  person,  firm  or  corporation,  or  the  individual  members 
thereof,  more  than  five  per  cent  of  its  deposits,  nor  more  than 
thirty  thousand  dollars;  nor  shall  such  loans  on  personal  se- 
curity exceed  ten  thousand  dollars,  until  its  deposits  amount  to 
one  million  dollars,  after  which  the  sums  so  loaned  may  lie  in- 
creased one  per  cent  of  the  deposits  in  excess  of  the  one  million 
dollars;  but  this  section  shall  not  apply  to  United  States  bonds 
or  municipal  bonds,  or  notes  with  such  bonds  as  collateral. 
1904,  No.  99,  8  i.  Sec.  4656.  Loans  to  officers,  directors  or  employes;  con- 
1884;  xo414i.'  §  -:>.  ditions.  No  loan  shall  be  made  to  an  officer,  director  or  em- 
ploye of  any  trust  company,  without  the  written  consent  of  a 
majority  of  the  directors;  and  such  loan  shall  not,  at  any  one 
time,  directly  or  indirectly,  exceed  five  per  cent  of  the  capital 
stock  actually  paid  in,  but  the  discount  of  bona  fide  bills  of  ex- 
change drawn  against  existing  values,  and  the  discount  of  com- 
mercial or  business  paper  actually  owned  by  such  director,  officer 
or  employe  negotiating  the  same  to  an  amount  not  exceeding  ten 
thousand  dollars,  or  a  loan  upon  the  pledge  of  any  of  the  securi- 
ties named  in  sections  four  thousand  six  hundred  and  forty- 
eight  and  four  thousand  six  hundred  and  fifty-four,  and 
subject  to  the  restrictions  thereof,  to  an  amount  not  exceeding 
the  same  sum,  shall  not  be  prohibited  by  this  section.  No  loan 
shall  be  made  by  such  corporation  upon  its  own  stock  as  col- 
lateral, 
v.  s.  5  4104.  Sec.  4657.     Stockholders'  liability.     The  stockholders  of  a 

j:ss,4;  j,036oa'.  §  ""'  trust  company  shall  be  held  individually  responsible,  equally  and 
ratably,  and  not  one  for  another,  for  all  contracts,  debts  and  en- 
gagements of  such  trust  company,  to  the  extent  of  the  amount 
of  their  capital  stock  therein  at  the  par  value  thereof,  in  addi- 
tion to  the  amount  invested  in  such  stock, 
v.  s   s  U05.  Sec.  4658.     Officer  not  to  receive  fee  from  borrower.     No 

1884.  No.  41,  §  31.    0jgcerj   trustee,  director  or  employe  of  a  savings  bank,  savings 
institution    or   trust    company   shall   receive    any    fee,    present, 

benefit  or  commission,  dii fly  or  indirectly,  from  a  borrower  or 

applicant  for  a  loan,  or  from  any  one  negotiating  securities  at 
the  institution  or  company  of  which  he  is  an  officer,  trustee,  di- 


R.   L.   S   33UC. 
1S78,  No.  1,  §  0 


57  Vt.  33L\ 


Chap.  197.]  DIVIDENDS    AND    SURPLUS.  901 

rector  or  employe;  nor  shall  he  receive  any  fee,  present,  benefit 
or  commission,  directly  or  indirectly,  for  a  loan  made  or  securi- 
ties bought  or  sold  by  such  institution  or  company,  except  the 
benefit  or  profit  he  may  derive  in  common  with  other  depositors 
or  stockholders,  and  the  compensation  allowed  by  such  institu- 
tion or  company,  for  services  and  expenses. 

Sec.  4659.     "Trust    company"    defined;    deposits    on    call,  woo,  No.  ^54,  s  l. 
The  words  "trust  company,"  as  used  in  this  chapter,  shall  beisssl  No.  ll  ^    ^ 
construed  to  include  savings  bank  and  trust  companies.     A  sav- ];s  Y.  s°3588. 
ings  bank,  savings  institution  or  trust  company  may  deposit  on ^|7|'tN^eJ-  *  14 
call  in  banks,  banking  associations  or  trust  companies  in  this 
state  or  in  the  cities  of  New  York,  Boston,  Chicago,  Albany, 
Philadelphia,  or  Concord,  New  Hampshire,  or  in  any  other  legal. 
designated  depository  under  the  laws  of  the  United  States,  or 
in  national  banks  in  the  cities  of  St.  Paul,  Minneapolis  and  Kan- 
sas City,  with  or  without  interest,  as  may  be  agreed  upon,  sums 
not  exceeding  in  the  aggregate  twenty  per  cent  of  the  assets  of 
such  savings  bank,  savings  institution  or  trust  company. 

Sec.  4660.  Real  estate,  acquiring  and  disposing  of.  A  1900,  No.  55,  §  l. 
savings  bank,  savings  institution  or  trust  company  may  hold  isnX  No._4i,'  .  33. 
real  estate  acquired  by  the  foreclosure  of  a  mortgage  thereon,  5's7s.  no.°i,  §  is. 
owned  by  or  pledged  to  such  corporation,  or  by  purchase  at  sales 
made  under  the  provisions  of  such  mortgage,  or  upon  judgments 
for  debts  due,  or  in  settlements  effected  to  secure  such  debts; 
and  such  real  estate  shall  be  sold  by  such  corporation  as  soon  as 
a  reasonable  price  can  be  obtained  therefor  and  within  five  years 
after  the  same  is  vested  in  such  corporation,  except  when  a 
majority  of  the  trustees  or  directors  of  such  corporation  shall 
make  application  in  writing  to  the  hank  commissioner,  stating 
that,  in  their  opinion,  the  interests  of  such  corporation  require 
that  such  real  estate  be  held  for  a  longer  period  than  five  years ; 
in  which  event,  said  commissioner  may  extend  the  time  of  hold- 
ing such  real  estate  not  to  exceed  three  years;  and  said  commis- 
sioner may,  at  any  time,  by  a  written  order,  directed  and  deliv- 
ered to  the  treasurer  of  such  corporation  at  least  ninety  days 
prior  to  the  time  limited,  order  the  sale  of  any  such  real  estate 
as  he  may  designate. 

Sec.  4661.     Rate  of  interest  on  loans.     Savings  banks,  sav- v.  s.  §  4ios 

,  .        .  l     i  i        ii       i  1S84,  No.  41,  §  34. 

nigs  institutions  or  trust  companies  incorporated  under  the  Uwsr,  L;  §  •;.-,•„, 
of  this  state  may  demand  and  receive  interest  on  their  loans  at  Jg5|;  N0..V7?' 
the  rate  of  six  per  cent  per  annum,  payable  semi-annually. 

Dividends  and   Surplus. 

Sec.  4662.     Surplus  fund.     A  savings  bank  or  savings  insti-v.  s.  8  4ioo. 
tution  shall,  at  the  time  of  making  each  semi-annual  dividend,  E.  L;  13591.  ' 
reserve  from  the  net  profits  accumulated  during  the  six  months  ls,s-  N 
then  next  preceding,  not  less  than  one-eighth  nor  more  than  one- 
fourth  of  one  per  cent  of  the  amount  of  deposits  as  a  surplus 
fund,  until  such  fund  amounts  to  five  per  cent  of  the  amount  of 
deposits   and   other  liabilities,   except   surplus ;   and   such   fund 


1900, 

No.  56, 

8 

1. 

1896, 

No.  81, 

§ 

l. 

V.  S. 

S  4110. 

l.sss, 

No.  13, 

§ 

1. 

ISM. 

No.  41, 

8 

;;.-. 

R.  L. 

§  3391. 

902  DIVIDENDS    AND    SURPLUS.  [Title  27. 

shall  be  thereafter  maintained  and  held  to  meet   losses  in    its 
business  from  depreciation  of  its  securities  or  otherwise. 

Sec.  4663.  Rate  of  interest  and  dividends.  The  trustees 
of  a  savings  bank  or  savings  institution  shall  regulate  the  rate 
of  interest  or  dividends,  not  to  exceed  one  and  three-fourths  per 
cent  semi-annually  upon  the  deposits  therewith,  in  such  manner 
that  depositors  shall  receive,  as  nearly  as  may  be,  the  profits  of 
such  corporation,  after  deducting  necessary  expenses,  and  re- 
serving such  amounts  as  the  trustees  deem  expedient  as  a  surplus 
fund  for  the  security  of  depositors,  which,  to  the  amount  of  ten 
per  cent  of  its  deposits,  the  trustees  of  such  corporation  may 
gradually  accumulate  and  hold  to  meet  any  contingency  or  loss 
in  its  business  from  the  depreciation  of  its  securities  or  other- 
wise; but  the  trustees  may  classify  the  depositors  according  to 
the  character,  amount  and  duration  of  their  dealings  with  the 
corporation,  and  regulate  the  interest  or  dividends  allowed,  so 
that  each  depositor  shall  receive  the  same  ratable  proportion  of 
interest  or  dividends  as  others  of  his  class. 
v.  s.  §  4iii.  Sec.  4664.     Interest  on   deposits.     The  trustees  shall  not 

R88i4!  1*3591.  S  3  '  declare  or  allow  interest  or  dividends  on  a  deposit  for  a  longer 
period  than  the  same  has  been  deposited,  except  that  deposits 
made  not  later  than  the  tenth  day  of  the  month  commencing  a 
semi-annual  interest  period,  or  than  the  fifth  day  of  other 
months,  may,  in  the  discretion  of  the  trustees,  have  interest  or 
dividends  declared  upon  them  from  the  first  day  of  the  month 
when  so  deposited, 
v.  s.  §  4112.  Sec.  4665.     Semi-annual    dividends.     After   the    accumula- 

r8Sl!  §"3391'. S  3°"  tion  of  a  surplus  fund  of  ten  per  cent  of  their  deposits,  which, 
or  the  accumulation  towards  which,  before  it  amounts  to  such  ten 
per  cent,  shall  not  be  reduced  by  dividends  or  interest  paid  or 
credited,  but  shall  be  thereafter  maintained  and  held  to  meet 
losses  in  its  business  from  any  cause,  the  trustees  may  declare 
and  pay  such  semi-annual  dividends  or  interest  as,  in  their  judg- 
ment, the  earnings  and  resources  of  the  corporation,  above  such 
surplus  fund,  warrant, 
v.  s.  §  4113.  Sec.  4666.     No  dividends  unless  earned.     No  dividends  or 

r88i4'.  §  °359i.  S  33-  interest  shall  be  declared,  credited  or  paid  until  the  trustees 
cause  an  examination  to  be  made,  and  find  that  the  amount 
thereof  has  been  actually  earned  and  stands  to  the  credit  of  the 
corporation,  nor  except  by  the  authority  of  a  vote  of  the  board 
<>f  trustees  entered  upon  their  records,  with  the  yeas  and  nays 
upon  such  vote.  Semi-annual  dividends  shall  be  declared  as  of 
the  first  of  January  and  the  first  of  July, 
v.  s.  s  41U.  Sec.  4667.     Division  of  net  profits.     Savings  banks  and  sav- 

1892.  Nn  6$;  5  1.  ing's  institutions  shall  triennially,  if  the  net  profits  above  the 
1888.  No.  13,  §  ten  per  cent  surplus,  consisting  of  the  reserve  fund  and  other 
accumulations,  amount  to  one  per  cent  of  the  deposits  which 
have  remained  in  such  savings  banks  and  savings  institutions  for 
one  year  then  next  preceding,  divide  the  same  among  the  deposi- 
tors whose  deposits  have  remained  therein  for  one  year  at  least 
then  next  preceding,  in  proportion  to  the  amount  of  dividends 


Chap.  197.]  INSPECTION.  903 

which  have  been  declared  on  their  deposits  during  the  three  years 
next  preceding. 

Sec.  4668.     Determination  of  surplus.     In  determining  the  vs.  §  4115. 

.  .  .  .  1SS4,   NO.  41,   §   •■».. 

per  cent  of  surplus  held  by  a  savings  hank  or  savings  institution,  k.l.  §3592. 
its  interest  or  dividend  paying  stocks  and  bonds  shall  not  be  esti- 1 
mated  above  their  market  value,  its  notes  and  mortgages  shall  be 
estimated  at  their  face  and  accrued  interest,  and  its  real  estate 
at  not  above  cost.  The  bank  commissioner  shall  have  power  to 
revise  the  valuation  of  such  investments,  and  may  change  the 
same  from  time  to  time. 

Reducing  Deposits  in  an  Insolvent  Institution. 

Sec.  4669.  Chancellor  may  order  examination.  When  a  v.  s.  §  4110.  ( 
savings  bank  or  savings  institution  is  insolvent  by  reason  of  loss  r.  i,'.  §  3598.  ' 
or  depreciation  in  the  value  of  its  assets,  without  fault  of  the 
trustees,  a  chancellor  shall,  on  petition  in  writing  of  a  majority 
of  the  trustees  and  the  bank  commissioner,  setting  forth  such 
facts,  appoint  a  time  for  the  examination  of  the  affairs  of  such 
corporation  and  cause  notice  thereof  to  be  given  to  parties  in- 
terested, in  such  manner  as  he  prescribes. 

Sec.  4670.  Division  of  losses  among  depositors.  If,  upon  v^s.  S^41*?-  g? 
such  examination  as  he  makes  or  causes  to  be  made  of  its  assets  r.  l!  §  359s'.  ' 
and  liabilities,  and  from  other  evidence,  he  is  satisfied  of  the 
facts  set  forth  in  such  petition,  and  that  the  corporation  has  not 
exceeded  its  powers  nor  failed  to  comply  with  the  rules,  restric- 
tions and  conditions  provided  by  law,  he  may,  if  he  deems  it  for 
the  interest  of  the  depositors  and  the  public,  reduce  the  deposit 
account  of  each  depositor,  so  as  to  divide  such  loss  proportion- 
ately among  the  depositors,  thereby  rendering  the  corporation 
solvent,  so  that  its  further  proceedings  will  not  be  hazardous  to 
the  public,   or  those  having   or   placing   funds   in    its   custody. 

Sec.  4671.     Dividend   to   depositors.     In   such   case,   a  de- v.  s.  s  4118. 

.'„.,»  ,  ,  .1  1SS4,  No.  41,  §  ::7. 

positor  shall  not  draw  from  such  corporation  a  larger  sum  than  r.  l.  §  359s. 
the  amount  thus  fixed  by  the  chancellor,  but  the  treasurer  shall 
keep  an  account  of  sums  received  for  such  assets  of  the  corpora- 
tion as  were  held  by  it  at  the  time  of  filing  such  petition;  and 
if  a  larger  sum  is  realized  than  the  value  estimated  by  the  chan- 
cellor, as  aforesaid,  he  shall,  at  such  time  as  the  chancellor  pre- 
scribes, render  an  account  thereof,  and  thereupon  the  chancellor, 
after  due  notice  to  parties  interested,  shall  declare  a  dividend  of 
such  excess  among  the  depositors  at  the  time  of  filing  the  petition. 

Sec.  4672.     Deposits  not  to  be  paid  or  received  pending  v.  s.  §  4119. 

■  -xt      j  -i.     1     11    1  -l  -li      lss-t-  No-  41,  s  ;:t. 

petition;  injunction.     Ao  deposit  shall  be  paid  or  received  by  r.  l.  §  3598. 

such  corporation  after  the  filing  of  the  petition,  until  the  decree 
of  the  chancellor  reducing  the  deposits  as  provided  in  the  second 
preceding  section.  If  the  petition  is  denied,  the  bank  commis- 
sioner shall  apply  for  an  injunction  against  such  corporation  and 
proceed  to  wind  up  its  affairs. 

Inspection. 
Sec.  4673.     Bank  commissioner  to  inspect  annually.     The  v.  s.  §  4120. 

,        ,  •      ■  ,     ,,  „  ..,        .  •  .•  •    -4.1884,  No.  41,   §  38. 

bank  commissioner  shall  annually,  without  previous  notice,  visit r.  l.  §  3599. 


904  CLOSING    UP    AFFAIRS.  [Title  -27. 

1S74,  No.  ST.  ss  i,  and  inspect  the   condition   and   affairs   of  every   savings   bank. 

G.  S.  86,  ss  30,  ::."..    savings  institution  and  trust  company,  and  ofteuer  if  he  believes 

1851,  No.  59,  Si*  o,  j-jjg  jnterest;  anc{  safety  of  the  depositors  and  creditors  require. 

He  may  examine,  upon  oath,  the  officers,  agents  and  servants  of 

such  savings  bank,  savings  institution  or  trust  company,  or  any 

other  person,  in  relation  to  the  affairs  and  condition  of  such 

institution,  and  may  administer  oaths  for  that  purpose. 

v.  s.  s   n.i  Sec.  4674.     Same;  when  treasurer  or  cashier  is  officer  in 

i:S7.'.  f*0359&  *         national  bank.     When  the  treasurer  or  cashier  of  a  trust  com- 

1874,  No.  87,  §§  l,  panv  js  an  officer  of  a  national  bank  or  banking  association,  or 

Pi.?-  s*}'  si|0,.f5-,  the  business  of  a  savings  bank,  savings  institution  or  trust  cora- 

1851,    No.    .•'.'.    S3    3,  °  ......  . 

7.  pany  is  carried  on  in  the  same  office  or  building  with  a  national 

banking  association,  said  commissioner  shall,  at  least  once  in  each 
year,  visit  and  inspect  the  condition  of  such  savings  bank,  sav- 
ings institution  or  trust  company,  at  the  same  time  that  the 
United  States  bank  examiner  visits  and  examines  such  national 
banking  association. 

Closing  up  Affairs  for  Breach  of  Law. 

v.  s.  5  4122  Sec.  4675.     Provisions    applicable    to    savings    banks    and 

r88l.  §"3600.  S  39'  institutions.  The  provisions  of  law  regulating  the  proceedings 
against  insolvent  banking  associations  shall  apply,  so  far  as  ap- 
plicable, to  savings  banks  and  savings  institutions,  except  that  the 
assets  of  savings  banks  and  savings  institutions,  after  the  costs 
of  the  proceedings  are  paid,  shall  be  distributed  equally  among 
all  the  creditors, 
v.  s.  5  4123.  Sec.  4676.     Provisions  applicable  to  trust  companies.    The 

it8  i,'.  i°seoi.        '   provisions  of  law  applicable  to  insolvent  banking  associations 
71  vt-  34G-  shall  regulate  proceedings  against  insolvent  trust  companies,  and 

the  final  distribution  of  their  assets. 
v.  s.  §  4124.  Sec.  4677.     Report  of  receiver  to  bank  commissioner.    The 

1884,  No.  41,  §  41.  •  e  1  ,  •  ,        ,  .  ... 

r.  l!  §  8602.  receiver  or  an  insolvent  savings  bank,  savings  institution  or  trust 

?)88s.'  8fi°' §'':!  1  company  shall  annually,  on  or  before  the  tenth  day  of  July,  and 

1859,  No.  29,  a£  Sllen  other  time  as  may  be  required  by  the  bank  commissioner, 

so  long  as  the  receivership  is  continued,  make  and  transmit  to 
said  commissioner  a  full  statement  of  the  affairs  of  such  insol- 
vent institution  showing  the  nature  and  amount  of  the  assets 
and  liabilities,  also  a  true  account  of  the  expenses  incurred  and 
not  previously  reported,  giving  the  items  thereof;  and  such  re- 
port shall  be  printed  with  and  as  a  part  of  the  annual  report  of 
said  commissioner. 
v.  s.  s  4UT,  Sec.  4678.     Duties  of  commissioner  in  case  of  bank's  mis- 

conduct. Whenever  it  appears  to  said  commissioner  from  an 
examination  made  by  him  or  from  any  report  made  to  him,  that 
a  savings  bank,  savings  institution  or  trust  company  has  com- 
mitted a  violation  of  its  charter  or  of  law,  or  is  conducting  its 
business  and  affairs  in  an  unsafe  or  unauthorized  manner,  or 
has  failed  to  comply  with  all  the  rules,  restrictions  and  condi- 
tions provided  by  law,  he  shall,  by  a  written  order  delivered  to 
the  treasurer  of  such  .corporation,  direct  such  corporation  to  dis- 


Chap.  197.]  SAFE    DEPOSIT    BOXES.  905 

continue  such  illegal,  unsafe  or  unauthorized  practices,  and  to 
proceed  in  strict  conformity  with  the  requirements  of  law. 

Sec.  4679.  Proceedings  if  corporation  neglects  to  com-  v.gS.  ^4126.  §  ^ 
ply  with  order  of  commissioner.  If  such  corporation  refuses  or 
neglects  to  comply  with  such  order,  or  if  it  appears  to  said  com- 
missioner that  it  is  unsafe  or  inexpedient  for  such  corporation  to 
continue  to  transact  business,  he  shall  proceed  against  it  as  pro- 
vided in  case  of  insolvent  savings  banks  and  trust  companies. 
The  court  of  chancery  before  which  such  proceedings  are  insti- 
tuted, before  the  appointment  of  a  receiver,  shall  have  power  to 
allow  such  corporation  to  continue  to  transact  business  in  con- 
formity with  the  requirements  of  law,  subject  to  such  orders, 
conditions  or  restrictions  as  the  evidence  in  the  case,  and  the  sit- 
uation of  the  parties  and  the  interests  involved  shall  require 

Safe  Deposit  Boxes. 

Sec.  4680.  Notice  upon  failure  to  pay  rent.  If  the  amount  ioog,  No.  129,  §  1. 
due  for  the  use  of  any  safe  or  box  in  the  vaults  of  a  safe  deposit 
company,  bank  or  banking  institution  is  not  paid  for  three  years, 
such  company,  bank  or  institution  may,  at  the  expiration  thereof, 
cause  to  lie  sent  to  the  person  in  whose  name  such  safe  or  box 
stands  on  its  books,  a  notice  in  writing  in  a  securely  closed  post- 
paid registered  letter,  directed  to  such  person  at  his  post-office 
address  as  recorded  upon  the  books  of  such  company  or  corpora- 
tion, and  at  his  last  known  address,  notifying  such  person  that 
if  the  amount  then  due  for  the  use  of  such  safe  or  box  is  not  paid 
within  sixty  days  from  the  date  of  such  notice,  the  safe  deposit 
company,  bank  or  banking  institution  will  then  cause  such  safe 
or  box  to  be  opened  in  the  presence  of  its  president,  or  cashier, 
or  secretary,  or  treasurer,  and  of  a  notary  public  not  an  officer 
or  in  the  employ  of  the  safe  deposit  company,  bank  or  banking 
institution,  and  the  contents  thereof,  if  any,  will  be  sealed  up  by 
said  notary  in  a  package,  upon  which  said  notary  will  distinctly 
mark  the  uame  and  address  of  the  person  in  whose  name  such 
safe  or  box  stands  upon  the  books  of  such  company,  bank  or  in- 
stitution, and  the  estimated  value  thereof;  and  the  package  so 
sealed  and  addressed,  when  marked  for  identification  by  said 
notary,  will  be  placed  by  said  notary  in  one  of  the  general  safes 
or  boxes  of  such  company  or  corporation. 

Sec.  4681.  Opening  and  removal  of  contents.  Upon  the  ioog,  No.  120,  5  1. 
expiration  of  sixty  days  from  the  date  of  mailing  such  notice  as 
provided  in  the  preceding  section,  and  the  failure  of  the  person 
in  whose  name  such  safe  or  box  stands  on  the  books  of  such  com- 
pany or  corporation  to  pay  the  amount  due  for  the  use  thereof 
in  full  up  to  the  date  of  such  notice,  the  president  of  such  com- 
pany or  corporation  may,  in  the  presence  of  a  notary  public  not 
an  officer  or  in  the  employ  of  such  company  o»  corporation,  and 
of  the  cashier,  or  secretary,  or  treasurer,  of  such  company  or 
corporation,  cause  such  safe  or  box  to  be  opened,  and  the  con- 
tents thereof,  if  any,  removed  and  sealed  up  by  said  notary  in  a 
package,  upon  which  said  notary  shall  distinctly  mark  the  name 


906  MISCELLANEOUS.  [Title  27. 

of  the  person  in  whose  name  such  safe  or  box  stood  on  the  books 
of  the  company  or  corporation  and  the  estimated  value  thereof ; 
and  when  such  package  has  been  marked  for  identification  by 
said  notary,  it  shall,  in  the  presence  of  the  president,  or  cashier, 
or  secretary,  or  treasurer,  of  such  company  or  corporation,  be 
placed  by  said  notary  in  one  of  the  general  safes  or  boxes  of  the 
company  or  corporation ;  and  the  proceedings  of  said  notary  shall 
be  fully  set  forth  by  him  in  his  own  handwriting  and  under  his 
official  seal,  in  a  book  to  be  kept  by  the  company  or  corporation 
for  that  purpose. 

Miscellaneous. 

v.  s.  i  4127.  Sec.   4682.     Misnomer  in  deed,   etc.     The  misnomer  of  a 

r8Sl:  ?  seos*.  S  43'  savings  bank  or  savings  institution  in  a  deed,  grant,  conveyance, 
I878i  No.  l,  |  id.     contraet  or  other  instrument  shall  not  impair  the  same,  if  such 
corporation  is  sufficiently  described  therein  to  ascertain  the  in- 
tention of  the  parties. 
v.  s.  §  4128.  Sec.  4683.     Charters  subject  to  this  chapter.     The  powers, 

r8Sl,:  i^eoi.  §  *"'  privileges,  duties  and  restrictions  conferred  and  imposed  upon 
1878,  No.  i.  §  2i.  a  savjngs  uank,  savings  institution  or  trust  company  by  its  char- 
ter are  hereby  abridged  or  enlarged  so  as  to  conform  to  the  pro- 
visions of  this  chapter,  and  to  such  amendments  as  may  be  made 
thereto ;  and  each  corporation  shall  possess  the  powers,  rights  and 
privileges,  and  be  subject  to  the  duties,  restrictions  and  liabili- 
ties, conferred  and  imposed  by  this  chapter,  anything  in  their 
respective  charters  to  the  contrary,  notwithstanding. 
v.  s.  §  4129.  Sec.  4684.     This  chapter  not  to  affect  prior  transactions. 

r88l.  *O3604.  §  44'  Nothing  in  this  chapter  shall  affect  the  legality  of  investments 
1878,  No.  i,  §  21.  hel.et,0fore  made,  or  of  transactions  heretofore  had,  pursuant  to 
the  law  in  force  when  such  investments  were  made  or  transac- 
tions had,  nor  to  require  the  change  of  investments  for  those 
named  in  this  chapter,  except  as  the  same  can  be  done  grad- 
ually by  the  sale  or  redemption  of  the  securities  so  invested,  in 
such  manner  as  to  prevent  loss  or  embarrassment  in  the  business 
of  such  corporation,  or  unnecessary  loss  or  injury  to  the  borrow- 
ers upon  such  securities. 
v.  s.  8  4130.  Sec.  4685.     Penalties  for  violating  this  chapter.     A  trus- 

i!88L.  s'mod.  §  4°'  tee  or  other  officer  of  a  savings  bank,  savings  institution  or  trust 
1878,  No.  l,  §  22.  company,  who  intentionally  violates  a  provision  of  this  chapter, 
shall  be  imprisoned  not  more  than  ten  years  nor  less  than  one 
year  or  fined  not  more  than  ten  thousand  dollars  nor  less  than 
one  hundred  dollars,  or  both;  and  the  state's  attorney  for  the 
county  in  which  such  corporation  is  located  shall  prosecute  such 
violation  on  complaint  thereof  by  the  bank  commissioner, 
v.  s.  S  4131.  Sec.  4686.     Institutions  holding  money  in  trust;  applica- 

1886,  No.  102.  tjQn  Q£  jawSi     Every  moneyed  institution  in  this  state,  soliciting 

or  receiving  money  in  a  trust  capacity  and  paying  interest 
thereon,  shall  be  subject  to  the  laws  regulating  savings  banks  and 
trust  companies. 


Chap.  198.]  TRUST   COMPANIES.  907 

CHAPTER  198. 

TRUST  COMPANIES  MAY  ACT  IN  FIDUCIARY 
CAPACITIES. 

Sec.  4687.  Appointed  executors  or  guardians.  A  trust  1002,  No.  72,  §  l. 
company  incorporated  under  the  laws  of  this  state  may  be  ap- 
pointed and  act  as  executor  of  a  will,  codicil  or  writing  testa- 
mentary, as  administrator  with  the  will  annexed,  as  adminis- 
trator of  a  person  deceased,  as  receiver,  assignee,  trustee  or 
guardian  of  a  person  subject  to  guardianship,  under  the  same 
circumstances,  in  the  same  manner  and  subject  to  the  same  con- 
trol by  the  court  having  jurisdiction,  as  a  natural  person  legally 
qualified. 

Sec.  4688.  Security.  The  capital  stock  and  surplus  of  a  1002,  No.  72,  §  2. 
trust  company  thus  appointed,  together  with  the  liabilities  of 
the  stockholders  of  such  trust  company,  shall  be  held  as  security 
for  the  faithful  discharge  of  the  duties  undertaken  by  virtue  of 
this  chapter;  and  no  surety  shall  be  required  upon  bonds  filed  by 
such  company,  unless  required  by  the  court. 

Sec.  4689.  Powers  and  duties  of  officers.  In  proceedings  1002,  No.  72,  §  2. 
in  the  probate  court  or  elsewhere,  connected  with  authority  exer- 
cised under  this  chapter,  all  accounts,  returns  and  other  papers 
may  be  signed  and  sworn  to  in  behalf  of  such  a  trust  company 
by  any  officer  thereof  duly  authorized  by  it ;  and  the  answers  and 
examinations  of  such  officer,  under  oath,  shall  be  received  as  the 
answers  and  examinations  of  such  company.  The  court  may  or- 
der and  compel  any  and  all  officers  of  such  company  to  answer 
and  attend  such  examinations,  in  the  same  manner  as  if  they, 
personally,  were  parties  to  the  proceeding  or  inquiry.  No  such 
company  shall  be  required  to  receive  or  hold  any  property  or 
money  or  to  execute  any  trust  contrary  to  its  own  desire. 

Sec.  4690.  Money  held  in  fiduciary  capacity  to  be  kept  1902.  No.  72,  §  3. 
separate.  All  moneys,  property  or  securities  received  or  held 
by  such  a  trust  company  under  the  provisions  of  this  chapter 
shall  be  kept  separate  and  distinct  from  its  general  business,  and 
shall  not  be  mingled  with  the  investments  of  its  capital  stock  or 
other  moneys  or  property  belonging  to  such  company,  or  be 
liable  for  the  debts  or  obligations  thereof. 

Sec.  4691.  When  authorized  by  bank  commissioner.  No  1002,  No.  72,  §  -». 
trust  company  shall  exercise  the  powers  and  duties  provided  in 
this  chapter,  until  it  has  applied  for  and  received  the  written 
authority  of  the  bank  commissioner  so  to  do ;  and  said  commis- 
sioner may  grant  or  decline  to  grant  such  authority,  after  such 
investigation  of  the  affairs  of  the  company  as  he  may  deem  ex- 
pedient. 

Sec.  4692.  Examination  of  companies  by  commissioner.  1002,  No.  72.  §  5. 
In  addition  to  such  examinations  required  ^0  be  made  by  law, 
said  commissioner  may  make  such  further  examinations  of  every 
company  exercising  the  powers  granted  in  this  chapter  as  he  may 
deem  necessary,  and  shall  make  such  examinations  when  ordered 
so  to  do  by  a  court  of  competent  jurisdiction.     Said  commis- 


908 


LOAN   AND    INVESTMENT   COMPANIES.        [Title  27. 

sioner  may  cause  an  examination  of  such  a  company  to  be  made 
by  an  expert  under  his  direction,  but  at  the  expense  of  such 
company. 

CHAPTER  199. 


LOAN  AND  INVESTMENT  COMPANIES. 

Section  4693. — Domestic  corporations. 

Sections  4G94-4702. — Foreign  corporations. 
Sections  4703,  4704. — Miscellaneous. 


V.  S.  S  4132. 

1S00.  No.  4,  |   1. 


v.  s.  § 

1890,  N 

73  Vt. 


4133. 

o.  4.  | 
to. 


V.   S.    § 
1890,   N 


4134. 
0.  4.   § 


v.  s.  5 
1S0O.  N 


413; 

0.    4. 


«  4. 


Domestic  Corporations. 

Sec.  4693.  Supervision  by  bank  commissioner.  Every 
corporation  organized  under  the  laws  of  this  state,  for  the  pur- 
pose of  selling  its  own  choses  in  action,  or  of  selling,  guaran- 
teeing or  negotiating  those  of  other  persons  or  corporations,  as 
investments  or  as  a  business,  shall  be  under  the  supervision  of 
the  bank  commissioner  and  subject  to  all  laws  relating  to  the 
examination  and  report  of  savings  banks  and  trust  companies. 
Said  commissioner  shall,  in  his  annual  report  of  such  corpora- 
tions, clearly  describe  the  various  classes  of  assets  and  liabilities 
of  each,  and  state  any  special  provision  made  for  the  payment  of 
such  liabilities. 

Foreign  Corporations. 

Sec.  4694.  Bond;  examination.  No  person  shall  act  in  this 
state  as  the  agent  or  representative  of  such  a  corporation,  organ- 
ized under  the  laws  of  another  state,  or  sell,  offer  for  sale  or  nego- 
tiate choses  in  action  owned,  issued,  negotiated  or  guaranteed  by 
it,  unless  such  corporation  has  filed  with  said  commissioner  a  bond 
to  the  state  for  such  an  amount  as  he  may  require,  not  more  than 
ten  thousand  dollars  and  not  less  than  five  hundred  dollars,  with 
such  sureties  or  security  as  he  may  approve,  conditioned  for  the 
making  of  such  returns  as  may  be  required,  and  the  payment  of 
all  taxes  that  may  be  assessed  against  it,  and  in  all  things  to  com- 
ply with  the  laws  of  this  state,  and  has  submitted  itself  and  its 
financial  condition  to  examination  by  said  commissioner,  in  such 
manner  as  to  enable  him  to  make  a  report  thereof  as  specified  in 
this  chapter;  and  such  report  shall  be  made  at  the  same  time  and 
in  the  same  manner  as  in  case  of  like  corporations  in  this  state. 

Sec.  4695.  Violating  this  chapter ;  penalty.  Said  com- 
missioner shall  promptly  notify  the  state's  attorney  of  violations 
of  this  chapter  that  come  to  his  knowledge.  A  person  who  vio- 
lates a  provision  of  this  chapter  shall  be  fined  not  more  than 
one  thousand  dollars  nor  less  than  fifty  dollars. 

Sec.  4696.  License;  list  of  agents.  When  it  appears  to 
said  commissioner  from  an  examination  made,  and  the  report 
submitted  by  such  a  corporation,  that  it  is  conducting  its  affairs 
in  a  safe  and  authorized  manner,  and  has  filed  the  bond  required 
by  this  chapter,  he  shall  issue  to  such  corporation  a  license  per- 
mitting it  to  transact  business  in  this  state  until  the  first  day  of 
January  following.     Every  such  corporation  shall .  within  thirty 


Chap.  199.]  MISCELLANEOUS.  909 

days  from  the  date  of  such  license,  file  in  the  office  of  said  com- 
missioner its  certificate  stating  the  name  and  business  address 
of  every  person,  association,  corporation  or  others  who  act  or  pro- 
pose to  act  in  this  state  as  its  agents  or  representatives ;  and,  in 
case  of  any  change,  an  amended  certificate  shall  be  filed  forth- 
with. 

Sec.  4697.  Commissioner  to  be  appointed  attorney  for  v.  s.  §  4136. 
service  of  process.  Such  a  corporation  shall,  before  being  au- 
thorized to  transact  business  within  this  state,  by  an  instrument 
in  writing,  appoint  said  commissioner  its  true  and  lawful  attor- 
ney, upon  whom  process  may  be  served,  with  the  same  effect  as 
if  such  corporation  existed  in  this  state.  Such  certificate  of 
appointment,  duly  authenticated,  shall  be  filed  in  the  office  of 
said  commissioner,  and  copies  certified  by  him  shall  be  deemed 
sufficient  evidence  thereof. 

Sec.  4698.  Commissioner  to  forward  copy  of  process;!?.  1906,  §4598. 
fee.  When  process  against  such  a  corporation  is  served  upon  isob',  No.  i,  §  3. 
said  commissioner,  he  shall  forward  a  copy  of  such  process  by 
mail,  prepaid,  directed  to  the  president  or  secretary  of  the  cor- 
poration. For  each  copy  of  such  process  said  commissioner  shall 
collect  one  dollar  from  the  plaintiff  or  moving  party  at  the  time 
of  service,  to  be  allowed  him  as  taxable  costs.  The  word 
"process,"  as  used  in  this  chapter,  shall  include  any  writ,  sum- 
mons, petition  or  order  whereby  a  suit,  action  or  proceeding 
shall  be  commenced  by  a  resident  of  this  state. 

Sec.  4699.     Licensee    to    file    reports    semi-annually.     Li- h.  1906,  54599. 
censees  under  this  chapter  shall  file  semi-annual  reports  in  the  iso'o!  is".  ■»'.  S  ,: 
office  of  said  commissioner,  within  twenty  days  after  the  first 
day  of  January  and  July ;  and,  upon  failure  so  to  do,  or  other- 
wise to  comply  with  this  chapter,  said  commissioner  shall  revoke 
such  license. 

Sec.  4700.  Commissioner  to  order  unsafe  business  discon- 1:.  1906,  s  4600. 
tinued.  If  such  licensee  conducts  its  business  in  an  unsafe  or  iso'o*.  No.  4,  §  7. 
unauthorized  manner,  said  commissioner  shall,  by  his  written 
order,  direct  such  licensee  to  discontinue  such  unsafe  and  un- 
authorized business  and  to  conform  to  its  charter  and  law,  and 
at  once  to  provide  for  the  safety  and  security  of  all  such  business 
transactions. 

Sec.  4701.  Revocation  of  license.  If  such  licensee  fails  r.  1906,  5  4601. 
to  comply  with  such  order  or  to  make  report  whenever  requested  isob',  No.  4,  «  7 
by  said  commissioner,  or  if  it  appears  to  said  commissioner  that 
it  is  unsafe  or  inexpedient  for  such  licensee  to  continue  business, 
he  shall  forthwith  revoke  the  license  by  sending  a  copy  of  the 
revocation  to  such  corporation  at  its  principal  place  of  business ; 
and  a  copy  of  such  revocation  shall  be  sent  to  each  agent  and 
representative  of  such  licensee  in  this  state. 

Sec.  470S.     Publication  of  order  of  revocation.     Said  com-  v.  s.  s  4141 
missioner  may  publish  such  order  with  sxfeh  additional  facts  as 
he  deems  proper,  in  any  newspaper  published  in  this  state. 

Miscellaneous. 
Sec.  4703.     Examination  by  deputy;  expense.     Said  com- v.  s.  §  4142. 

,        .,  .       ,.  .       ,    .       ,,  •        ,         ,       1S90,  No,  4.  §   8. 

missioner  may  make  the  examinations  required  m  this  chapter 


910  SAVINGS   AND    LOAN    ASSOCIATIONS.         [Title  27. 

by  deputy.  All  services  rendered  and  expenses  incurred  under 
this  chapter  shall  be  approved  by  the  auditor  of  accounts  and 
paid  by  the  corporations  that  are  licensed,  and  the  same  shall 
be  equitably  apportioned  among  such  corporations  by  said  com- 
missioner. 
v.  s.  §  4i43.  Sec.  4704.     Building  and  loan  associations.     Building  and 

1890,  No.  4,  §  o.      loaQ  assoeiations  doing  business  in  the  state  shall  be  subject  to 
the  provisions  of  this  chapter. 

CHAPTER  200. 

COOPERATIVE  SAVINGS  AND  LOAN 
ASSOCIATIONS. 

Section  4705. — Formation. 

Section  470G. — Object. 

Section  4707. — Organization. 

Section  470S. — Officers;  meetings. 

Section  4709.— Capital  stock. 

Section  4710.— Dues. 

Sections  4711,  4712. — Cancellation  of  unpledged  shares. 

Section  4713.— Matured  shares. 

Sections  4711-4719. — Loans. 

Section  4720. — Real  estate. 

Section  4721.— Profits  and  losses. 

Section  4722.— Transfer  of  shares. 

Section  4723.— By-laws;  attorney. 

Section  4724. — Members. 

Section  4725.— Exemptions. 

Sections  472G,  4727.— Reports. 

Sections  4728,  4729.— Examination. 

Formation. 

v.  s.  §  4144.  Sec.  4705.     Incorporators;  name.     Fifteen  or  more  persons 

1894!  No.  98,  §  i.  of  age>  resi(jents  of  this  state,  may  form  an  association  as  pro- 
vided in  this  chapter.  Associations  formed  under  the  provisions 
of  this  chapter  shall  be  known  as  cooperative  savings  and  loan 
associations ;  and  the  name  of  every  association,  so  formed,  shall 
contain  as  a  part  thereof,  the  words  "cooperative  savings  and 
loan  association." 
„  Object. 

v.  s.  §  4i4.j.  Sec.  4706.     In  general.     The  object  and  purpose  of  such  as- 

1894,  no.  9S,  §  2.  soeiatjons  shall  be  to  encourage  industry,  frugality,  home  build- 
ing and  savings  among  its  members ;  the  accumulation  of  savings, 
the  loaning  of  such  accumulation  to  its  members,  and  the  repay- 
ment to  each  member  of  his  savings  when  they  have  accumulated 
to  a  certain  sum,  or  at  any  time  when  he  shall  desire  the  same 
or  the  association  shall  desire  to  repay  the  same. 

Organization. 

v   s   §  4146.  Sec.  4707.     Certificate.     Such  association  shall  become  in- 

L894,  No.  98,  5  3.     corporated  by  said  fifteen  or  more  persons  making  and  signing 


Chap.  200.]  CAPITAL   STOCK.  911 

a  certificate  stating  the  name  of  such  association;  that  the  asso- 
ciation is  formed  under  and  for  the  purposes  prescribed  in  this 
chapter;  the  town,  city  or  village  where  the  association  is  located 
within  this  state,  and  the  limit  of  the  number  of  shares  outstand- 
ing at  any  one  time.  Such  certificate  shall  be  filed  and  recorded 
in  the  office  of  the  secretary  of  state;  and  upon  being  so  filed 
and  recorded,  the  secretary  of  state  shall  issue  his  certificate, 
declaring  the  facts  contained  in  such  original  certificate,  and  the 
filing  and  recording  thereof  in  his  office,  which  shall  thereupon 
be  recorded  in  the  town  clerk's  office  of  the  town  where  such  as- 
sociation is  located ;  and,  upon  being  so  recorded  and  published 
at  length  in  a  newspaper  circulating  in  such  town,  the  persons 
named  in  the  original  certificate,  their  associates  and  successors 
shall  become  a  corporate  body. 

Officers;   Meetings. 
Sec.   4708.     Election    and    term    of    officers;    stated    and V-  s.  I  4147. 

„_  .  .....  .    ,  1S0-1,  No.  98,  I  4. 

special  meetings.  The  officers  of  such  association  shall  consist 
of  a  president,  vice-president,  treasurer  and  secretary,  who  shall 
be  ex-officio  members  of  the  board  of  directors,  which  shall  con- 
sist of  five  members,  exclusive  of  such  ex-officio  members.  Other 
officers  may  be  authorized  by  the  by-laws.  The  duties,  compen- 
sation, term  of  office,  time  of  election  of  officers,  and  the  time  of 
periodical  meetings  of  the  officers  and  shareholders  shall  be  de- 
termined by  the  by-laws ;  except  that  the  board  of  directors  shall 
annually  determine  the  compensation  of  the  secretary  and  treas- 
urer. Special  meetings  of  the  officers  and  shareholders  shall  be 
called  and  held  as  provided  by  the  by-laws.  Each  shareholder 
shall  be  entitled  to  one  vote,  at  all  meetings  of  the  shareholders, 
for  each  share  owned  by  him  or  held  by  him  as  trustee,  not  in 
arrears  for  dues.  All  officers  shall  hold  office  until  their  succes- 
sors arc  duly  elected  and  assume  the  duties  of  their  office.  No 
association  shall  expire  from  neglect  on  its  part  to  elect  officers 
at  the  time  prescribed  by  the  by-laws. 

Capital    Stock. 

Sec.  4709.  Shares;  limitation.  The  capital  of  such  asso-v.  s.  §  -ins. 
ciation  shall  consist  of  the  accumulated  savings  of  its  members, 
which  it  holds,  and  shall  not  exceed  at  any  one  time  one  million 
dollars,  and  shall  be  divided  into  shares  of  the  matured  value  of 
two  hundred  dollars  each.  The  total  number  of  shares  outstand- 
ing at  any  time  shall  not  exceed  ten  thousand.  The  shares  shall 
be  issued  in  annual  and  semi-annual  series,  in  such  amounts  in 
each  series  and  at  such  times  as  shall  be  determined  by  the  by- 
laws of  the  association.  No  shares  of  a  prior  series  shall  be 
issued  after  the  issuing  of  shares  in  a  new  series.  Shares  which 
have  not  been  pledged  as  collateral  security  for  the  repayment 
of  a  loan  shall  be  called  unpledged  shares.  Shares  that  have 
been  so  pledged  shall  be  called  pledged  shares.  No  person  shall 
hold  more  than  twenty-five  shares  in  any  one  such  corporation. 


912  CANCELLATION   OF   UNPLEDGED   SHARES.    [Title  27. 

Dues. 

v.  s.  §  4140.  Sec.  4710.     Payment;  fines;  entrance  fee.     Savings  paid  to 

such  association  upon  shares  shall  be  called  dues.  At  or  before 
each  stated  monthly  or  semi-monthly  meeting  of  the  board  of 
directors,  each  shareholder  shall  pay  to  such  board,  or  a  commit- 
tee thereof,  one  dollar  dues  upon  each  share  of  stock  held  by  him 
until  the  share  reaches  the  value  of  two  hundred  dollars,  or  is 
withdrawn,  cancelled  or  forfeited.  Payment  of  dues  on  shares 
of  each  series  shall  commence  from  their  issue.  The  association 
shall  have  power  to  impose  and  collect  a  fine,  not  exceeding  two 
per  cent  for  each  month  in  arrears,  for  every  dollar  of  dues  or 
interest  which  a  shareholder  shall  refuse  or  neglect  to  pay  at 
the  time  it  is  due.  It  shall  also  have  power  to  charge  an  entrance 
fee  of  not  exceeding  twenty-five  cents  on  each  share  of  stock 
issued  by  the  association. 

Cancellation  of  Unpledged  Shares. 

v.  s.  §  4150.  Sec.  4711.     By  shareholders.     The  accumulations  upon  un- 

pledged  shares  may  be  withdrawn,  and  the  shares  cancelled  after 
one  month's  written  notice  of  such  intention  filed  with  the  secre- 
tary at  or  before  a  stated  monthly  meeting  of  the  board  of  di- 
rectors. If  filed  before  such  meeting,  the  one  month's  notice 
shall  not  be  deemed  to  have  commenced  until  the  first  regular 
meeting  after  such  filing.  The  withdrawing  shareholder  shall  be 
paid  the  amount  of  the  withdrawal  value  of  his  accumulations 
as  determined  under  the  by-laws,  at  the  last  distribution  of  prof- 
its before  the  notice  of  withdrawal,  together  with  all  dues  paid 
since  such  distribution,  and  such  interest  on  the  value  of  the 
shares  at  the  time  of  the  last  distribution  and  on  the  dues  there- 
after paid,  as  the  by-laws  shall  determine,  less  any  fines  unpaid 
and  a  proportionate  share  of  any  unadjusted  loss;  provided  that 
at  no  time  shall  more  than  one-half  the  receipts  of  the  associa- 
tion, and  when  the  association  is  indebted  upon  matured  shares, 
not  more  than  one-third,  be  applicable  to  the  payment  of  with- 
drawing shareholders,  without  the  consent  of  the  board  of  direc- 
tors ;  and  when  the  demands  of  withdrawing  shareholders  exceed 
the  moneys  applicable  to  their  payment,  they  shall  be  paid  in  the 
order  in  which  their  notices  of  withdrawal  were  filed  with  the 
secretary. 
v.  s.  s  4150.  Sec.  4712.     By  the  board  of  directors.     The  board  of  direc- 

1894,  No,  98,  s  7.  j.Qrg  mav>  jn  their  discretion,  under  rules  made  by  them,  retire 
the  unpledged  shares  of  any  series  at  any  time  after  four  years 
from  the  date  of  their  issue,  by  enforcing  withdrawals  of  the 
same;  provided  that  the  shareholders  whose  shares  are  to  lie  re- 
tired shall  lie  determined  by  lot,  and  that  they  shall  be  paid  the 
full  value  of  their  shares,  less  all  fines  and  proportionate  part  of 
unadjusted  loss;  provided  also  that  shares  pledged  for  share 
loans  shall  be  treated  as  unpledged  shares. 


Chap.  200.]  LOANS.  913 

Matured  Shares. 

Sec.  4713.  Payment.  When  each  unpledged  share  of  a  v.  s  §,4151. 
given  series  reaches  the  value  of  two  hundred  dollars,  all  pay- 
ment of  dues  thereon  shall  cease,  and  the  holder  thereof  shall  be 
paid  out  of  the  funds  of  the  association  two  hundred  dollars 
therefor,  with  such  rate  of  interest  as  shall  be  determined  by  the 
by-laws,  from  the  time  the  board  of  directors  shall  declare  such 
share  to  have  matured  until  paid ;  but  at  no  time  shall  more  than 
one-third  of  the  receipts  of  the  association  be  applicable  to  the 
payment  of  matured  shares,  without  the  consent  of  the  board  of 
directors.  The  order  of  payment  of  the  matured  shares  shall  be 
determined  by  the  board  of  directors.  Before  paying  matured 
shares  all  arrears  and  fines  shall  be  deducted  therefrom. 

Loans. 

Sec.  4714.  Limit;  allotment.  At  each  monthly  stated  v.  s.  §4152. 
meeting,  immediately  following  the  receipt  of  dues  and  interest, 
the  board  of  directors  shall  offer  to  members  of  the  association, 
desiring  to  borrow,  all  accumulations  applicable  to  that  purpose. 
The  same  shall  be  loaned  in  sums  of  two  hundred  dollars,  or  a 
multiple  thereof,  or  the  fractional  parts  of  one-fourth  or  one-half 
thereof.  If  there  shall  be  more  than  one  member  desiring  to 
borrow,  their  right  to  a  loan  shall  be  determined  by  an  open  bid- 
ding of  a  premium  per  share ;  the  member  bidding  the  highest 
premium  shall  be  entitled  to  the.  loan,  upon  giving  proper  se- 
curity. From  the  sum  loaned  shall  be  deducted,  at  the  time  of 
loaning,  the  amount  of  the  premium  bid.  The  receiving  of  such 
premium  or  interest  paid  on  the  loan  shall  not  be  deemed  a  vio- 
lation of  the  usury  laws.  No  member  shall  borrow  a  larger  sum 
than  shall  be  equal  to  the  matured  value  of  the  shares  held  by 
him. 

Sec.  4715.  Interest.  A  borrowing  member,  for  each  share  v.  s.  s  4152. 
or  fractional  part  thereof  borrowed  upon,  shall,  in  addition  to  1894'  No'  98,  5  9' 
the  dues  on  his  shares,  pay  monthly  interest  on  his  loan  at  the 
rate  of  six  per  cent  per  annum,  or  such  lower  rate  as  the  by-laws 
shall  name,  until  the  shares  borrowed  upon  reach  the  matured 
value  of  two  hundred  dollars  each,  or  the  loan  is  repaid;  and. 
when  such  matured  value  is  reached,  the  share  shall  cancel  the 
loan  upon  it,  and  the  proper  surrenders  and  acquittances  be 
made. 

Sec.  4716.  Security.  For  every  loan  made,  a  first  mort-v.  s.  §  4ir>3. 
gage  upon  real  estate  shall  be  given,  accompanied  by  a  transfer  1*94,  No  98,  §  10" 
and  pledge  to  the  association  of  the  shares  borrowed  upon,  and 
all  accumulations  that  have  accrued  or  shall  accrue  thereon,  as 
collateral  security  for  the  repayment  of  the  loan ;  or,  in  lieu  of 
the  mortgage,  the  borrower,  or  another,  may  transfer  and  pledge 
to  the  association,  for  the  payment  of  the.loan,  unpledged  shares, 
the  withdrawal  value  of  which  under  the  by-laws,  at  the  time  of 
such  borrowing,  shall  exceed  the  amount  borrowed  and  interest 
thereon  for  six  months.  If  the  borrower  neglects  to  offer  se- 
curity satisfactory  to  the  board  of  directors  within  the  time  pro- 

58 


914 


PROFITS    AND    LOSSES. 


[Title  27. 


v.  s 

1S94 


5   4154. 
No.  98, 


vided  by  the  by-laws,  his  right  to  the  loan  shall  be  forfeited,  and 
he  shall  be  charged  with  one  month's  interest,  and  all  necessary 
expenses  incurred,  if  any,  under  the  by-laws,  in  reference  to  his 
proposed  loan.  All  mortgages  given  to  the  association  shall  be 
deemed  conditioned  upon  the  performance  of  the  provisions  of 
this  chapter  relating  to  the  repayment  of  loans  and  interest 
thereon,  and  the  by-laws  of  the  association,  although  the  same 
may  not  be  fully  expressed  therein, 
v.  s.  5  4153.  Sec.  4717.     Payment.     A -borrower  may  repay  a  loan  and 

1894;  No.  98,  §  io.   all  arrears  0£  interest  and  fines  thereon,  or  one  share  thereof, 
that  is,  the  sum  of  two  hundred  dollars,  at  any  stated  monthly 
meeting,  or  at  any  other  time;  but  when  not  made  at  a  stated 
meeting,  he  shall  pay  interest  up  to  the  first  monthly  meeting 
after  such  payment.     He  may  repay  his  loan  in  full,  thereby  re- 
lieving his  shares  from  liability  upon  the  pledge  thereof  made 
to  the  association,  or  he  may,  by  a  proper  notice  and  direction  as 
to  the  application,  have  the  withdrawal  value  of  the  shares  bor- 
rowed upon  applied  in  payment  or  part  payment  of  his  loan. 
Sec.  4718.     Dues  in  arrears ;  notice ;  forfeiture.     Whenever 
s  1L    a  member  shall  be  six  months  in  arrears  in  the  payment  of  his 
dues  upon  unpledged  shares,  the  secretary  shall  give  him  notice 
thereof  in  writing  and  a  statement  of  his  arrearages,  by  mailing 
the  same  to  him  at  the  last  post-office  address  given  by  him  to 
the  association ;  and,  if  he  shall  not  pay  the  same  at  the  next  or 
second  stated  monthly  meeting  thereafter,  the  board  of  directors 
may,  at  its  option,  declare  his  shares  forfeited;  and,  at  the  time 
of  such  forfeiture,  the  withdrawal  value  thereof  shall  be  deter- 
mined and  stated,  and  the  defaulting  member  shall  be  entitled 
to  withdraw  the  same  without  interest,  within  one  year,  upon 
such  notice  as  shall  be  required  of  a  withdrawing  shareholder. 
Sec.  4719.     Interest  in  arrears;  effect;  proceedings.    When 
§  12-   a  borrowing  member  shall  be  six  months  in  arrears  in  the  pay- 
ment of  his  dues  and  interest,  or  either,  the  whole  loan  shall  be- 
come due  at  the  option  of  the  board  of  directors ;  and  it  may  pro- 
ceed to  enforce  collection  upon  the  securities  held  by  the  asso- 
ciation.    The  withdrawal  value,  at  the.  time  of  the  commence- 
ment of  the  action,  of  all  shares  pledged  as  collateral  security  for 
the  loan,  shall  be  applied  upon  the  loan  and  arrearages  of  inter- 
est and  fines  thereon,  and  the  shares  deemed  surrendered  to  the 

association. 

Real  Estate. 

Sec.  4720.  Purchase ;  sale.  Such  association  may  purchase 
at  a  sale,  public  or  private,  real  estate  upon  which  it  has  a  mort- 
gage, judgment,  lien  or  other  encumbrance,  or  in  which  it  has 
an  interest,  and  may  sell,  convey,  lease  or  mortgage  the  same  at 
pleasure  to  any  person  or  persons. 

Profits  and  Losses. 

v.  s.  s  4157,  Sec.  4721.     Distribution;  guaranty  fund.     Profits  and  losses 

1894]  No.  98,'  §  14.   ghall  be  distributed  at  least  annually,  and  always  before  issuing 

a  new  series  of  stock  to  the  shares  then  outstanding.     Profits 


V.  S.  §  4135 
1894,  No.  98, 


V,  S.  §  4156. 
1894,  No.  98, 


§  13 


Chap.  200.]  EXEMPTIONS.  915 

and  losses  shall  be  distributed  to  all  shares,  in  all  series  outstand- 
ing at  the  time  of  such  distribution,  in  proportion  to  their  hold- 
ing value,  as  distinguished  from  their  withdrawing  value,  except 
that  in  addition  thereto  a  distribution  of  not  exceeding  the 
amount  of  the  entrance  fee,  in  the  discretion  of  the  board  of  di- 
rectors, may  be  made  to  each  share  outstanding  in  the  last  series 
issued  prior  to  the  distribution.  At  each  periodical  distribution 
of  profits,  the  board  of  directors  may  reserve  and  carry  as  undis- 
tributed profits  in  the  nature  of  a  guaranty  fund,  any  sum  from 
the  net  profits  that,  in  its  discretion,  seems  wise,  not  exceeding 
five  per  cent  thereof,  to  be  applied  upon  any  future  losses  that 
may  occur  from  any  cause  whatsoever. 

Transfer  of  Shares. 

Sec.  4722.  Regulations ;  fees.  No  transfers  of  shares  shall  v.  s.  §  4i58. 
be  binding  upon  the  association  until  the  same  have  been  made  1894'  No'  98,  s  15, 
upon  the  books  of  the  association ;  and  the  transferee  thereof 
shall  take  the  same  charged  with  all  the  liabilities  and  conditions 
attaching  thereto  in  the  hands  of  the  one  transferring  the  same. 
The  association  may  require  a  transfer  fee  of  not  exceeding 
twenty-five  cents  per  share. 

By-Laws ;  Attorney. 

Sec.  4723.  Scope  of  by-laws ;  appointment  and  removal  v.  s.  §  4ioo. 
of  attorney.  Such  association,  as  soon  as  duly  incorporated, 3894,  N 
shall  possess  power  to  adopt  by-laws,  not  inconsistent  with  the 
provisions  of  this  chapter,  regulating  the  conduct  of  the  business 
of  the  association,  defining  the  duties  of  officers  and  committees, 
times  of  meeting,  mode  of  determining  and  declaring  the  with- 
drawing value  of  shares,  and  in  relation  to  all  other  matters 
having  reference  to  the  conduct  of  the  business,  although  not 
specifically  mentioned  in  this  chapter.  The  board  of  directors 
shall  have  power  to  appoint  and  remove  at  pleasure  an  attorney 
for  the  association. 

Members. 

Sec.  4724.  Qualifications;  notice.  Any  person  of  age  and  v.  s.  §  4160. 
sound  mind  may  become  a  member  of  such  association  by  taking 1894,  N  98,  8  1?" 
one  or  more  shares  therein,  and  subscribing  to  the  by-laws,  and 
annexing  to  his  signature  his  post-office  address ;  and  whenever 
he  desires  his  post-office  address  changed,  he  shall  give  written 
notice  thereof  to  the  secretary  of  the  association ;  and  for  the  pur- 
pose of  giving  a  member  notice  by  mail,  the  last  post-office  ad- 
dress given  by  him  shall  be  deemed  the  proper  one.  A  minor 
may  hold  shares  in  the  name  of  a  parent,  guardian  or  next  friend 
as  trustee  for  him. 

Exemptions. 

Sec.  4725.     Attachment,  etc. ;   corporation  tax.     All  accu-  v.  s.  §  4160. 
mulations  upon  shares  in  such  association  held  by  any  person1894'  No'  98,  5  17- 
shall  be  exempt  from  attachment,  levy  and  trustee  process,  to 


916  EXAMINATION.  [Title  27. 

the  amount  of  five  hundred  dollars;  and  the  association  itself 
shall  be  deemed  an  institution  for  savings  and  not  taxable  under 
any  corporation  tax  law  which  shall  exempt  savings  banks,  or 
institutions  for  savings,  from  taxation. 

Reports. 

v.  s.  |  4161.  Sec.  4726.     To  bank  commissioner;  contents.     An  associa- 

tion organized  under  the  provisions  of  this  chapter  shall  an- 
nually make  a  full  report  in  writing  of  the  affairs  and  condition 
of  such  association  on  the  first  day  of  January,  to  the  bank  com- 
missioner, in  such  form  and  by  such  officers  of  the  association 
as  said  commissioner  may  designate.  Such  report  shall  be  veri- 
fied by  the  oath  of  the  officer  making  the  same.  An  associa- 
tion shall  make  such  further  report  as  said  commissioner  may  re- 
quire, and  in  such  form,  and  as  to  such  matters  relating  to  the 
condition  and  conducting  of  the  business  of  the  association,  as 
•  said  commissioner  may  designate.  Any  wilful  false  swearing  in 
making  and  verifying  such  reports  shall  be  deemed  perjury. 
r.  1906,  §  4G2T.  Sec.  4727.     Failure  to  furnish;  penalty.     If  such  an  asso- 

1894!  No41!!,'  §  19.  ciation  fails  to  furnish  said  commissioner  a  report  required  by 
this  chapter,  at  the  time  so  required,  it  shall  forfeit  the  sum  of 
ten  dollars  a  day  for  every  day  such  report  is  delayed  or  with- 
held; and  said  commissioner  may  maintain  an  action  on  this 
statute,  in  his  name,  to  recover  such  penalty ;  and  the  same  shall 
be  paid  into  the  treasury  of  the  state. 

Examination. 

v.  s.  s  4163.  Sec.  4728.     By  bank  commissioner,  etc.     An  association  or- 

1894,  No.  9S,  §  20.   ganized  un(}er  the  provisions  of  this  chapter  shall  be  subject  to 
the  visitation  and  examination  of  the  bank  commissioner,  his 
deputies  or  duly  appointed  agents,  at  all  times  or  upon  the 
application  of  three  or  more  members  of  such  association. 
v.  s.  8  4163.  Sec.  4729.     Discontinuance  of  unsafe  practices;  proceed- 

1894,  No.  98,  §  so.  jngg  j£  jt  appears  i0  sa[^  commissioner,  from  the  report  of  such 
association,  or  from  an  examination  made  by  him,  his  deputies 
or  duly  appointed  agents,  that  such  an  association  is  violating 
the  provisions  of  this  chapter,  or  is  conducting  its  business  in 
an  unsafe  or  unauthorized  manner,  he  shall,  by  an  order  under 
his  hand  and  seal  addressed  to  such  association,  direct  the  discon- 
tinuance of  such  illegal  and  unsafe  practices ;  and  whenever  such 
association  neglects  or  refuses  to  comply  with  such  order,  or 
make  reports  as  required,  he  shall  communicate  such  facts  to 
the  auditor  of  accounts,  who  shall  thereupon  direct  such  proceed- 
ings to  be  instituted  against  such  association  as  are  provided  by 
law  in  the  case  of  an  insolvent  corporation,  or  such  other  pro- 
ceeding as  the  nature  of  the  case  may  require. 


Chap.  201.]      BUILDING    AND    LOAN   ASSOCIATIONS.  917 

CHAPTER  201. 
FOREIGN  BUILDING  AND  LOAN  ASSOCIATIONS. 

Sections  4730-4736. — Requirements    for    entering    and     doing 

business  in  the  state. 
Section  4737. — Securities  held  by  treasurer. 

Sections  473S-4741. — Duties  of  bank  commissioner. 
Section  4742. — Reciprocal  provisions. 

Requirements  for  Entering  and  Doing  Business  in  the  State. 

Sec.  4730.     Compliance    with    law ;    license.     No    foreign  isog,  xo.  82,  •.  l. 
building  and  loan  association  shall  do  business  in  this  state  until 
it  has  complied  with  the  provisions  of  the  six  following  sections 
and  received  a  license  from  the  bank  commissioner. 

Sec.  4731.     Charter,  constitution  and  by-laws  to  be  filed.  1896,  No.  82,  j  i. 
A  certified  copy  of  the  charter,  constitution  and  by-laws  of  such 
association  showing  its  manner  of  doing  business  shall  be  filed 
with  said  commissioner. 

Sec.  4732.  Bank  commissioner  to  be  attorney  for  service  1S96,  No.  82,  §  l. 
of  process.  Such  association  shall,  in  writing,  appoint  said  com- 
missioner its  true  and  lawful  attorney  upon  whom  service  of 
legal  process  in  any  action  or  proceeding  against  it  may  be  made 
with  the  same  force  and  validity  as  if  made  upon  such  associa- 
tion; and  such  appointment  shall  continue  in  force  so  long  as 
any  liability  against  such  association  remains  outstanding  in  this 
state.  Such  power  of  attorney  shall  be  deposited  with  said  com- 
missioner, and  a  copy  thereof  duly  certified  by  him  shall  be  evi- 
dence in  any  court. 

Sec.  4733.  Semi-annual  reports.  Such  association  shall  isoo,  xo.  82,  $  i. 
semi-annually,  on  or  before  the  first  day  of  February  and  August, 
file  with  said  commissioner  a  statement  signed  and  sworn  to  by 
its  president  and  secretary,  or  by  three  directors,  before  a  notary 
public,  showing  its  business  standing  and  financial  condition  on 
the  last  days  of  December  and  June  preceding;  and  such  state- 
ment shall  show  that  it  possesses  actual  paid  in,  unimpaired  and 
well  invested  assets  of  at  least  three  hundred  thousand  dollars, 
and  a  fully  paid  up  cash  guaranty  fund  of  twenty-five  thousand 
dollars. 

Sec.  4734.  Fees.  Such  association  shall  annually  pay  to  tsoc.xo.  82,  $  l. 
said  commissioner,  for  the  purpose  of  paying  the  expense  of 
filing  papers  and  compensation  for  making  examinations,  as  pro- 
vided in  this  chapter,  the  following  fees :  for  the  first  one  hun- 
dred thousand  dollars  or  less  of  assets,  a  fee  of  fifty  dollars ;  and 
for  each  additional  one  hundred  thousand  dollars  of  assets,  or 
the  major  portion  thereof,  an  additional  fee  of  five  dollars;  but 
in  no  event  shall  such  compensation  exceed  one  hundred  dollars 
per  year;  and  shall  also  pay  to  said  commissioner  his  actual  neces- 
sary expenses  while  engaged  in  making  such  examinations. 

Sec.  4735.     Deposit  of  securities.     Such   association  shall  isog,  no.  82,  s  i. 
deposit  with  the  state  treasurer  first  mortgage  securities  to  the 
amount  of  twenty-five  thousand  dollars,  approved  by  said  com- 


918  DUTIES    OF    BANK    COMMISSIONER.  [Title  27. 

missioner ;  and  such  deposit  shall  be  held  in  trust  by  said  treas- 
urer for  the  protection  and  indemnity  of  the  residents  of  this 
state  with  whom  such  association  has  or  may  transact  business. 
1896,  No.  82,  §  i.  Sec.  4736.  Bond.  Such  association  shall  file  with  said  com- 
missioner a  bond  to  the  state  in  such  sum  as  he  may  require,  not 
more  than  ten  thousand  dollars  nor  less  than  five  hundred  dol- 
lars, with  such  sureties  or  securities  as  he  approves,  conditioned 
for  the  making  of  reports  and  returns  required  by  this  chapter 
and  the  payment  of  all  taxes  assessed  against  it  and  in  all  cas"es 
to  comply  with  the  laws  of  this  state. 

Securities  Held  by  Treasurer. 

1896,  No.  82,  §  2.  Sec.  4737.  Collection  of  interest,  premiums  and  dues; 
surrender  of  mortgages.  All  interest,  premiums  and  dues 
which  may  accrue  on  the  mortgages  held  by  the  state  treasurer 
as  provided  in  the  second  preceding  section  may  be  collected  and 
retained  by  the  association  depositing  the  same  so  long  as  such 
association  remains  solvent  and  faithfully  performs  all  contracts 
with  its  members;  and  when  a  mortgage  is  fully  paid  to  such 
association,  it  may  be  surrendered  to  it,  after  such  association  or 
corporation  has  deposited  with  the  state  treasurer  other  first 
mortgage  securities  approved  by  said  commissioner,  to  the 
amount  of  those  withdrawn. 

Duties  of  Bank  Commissioner. 

1896,  No.  82,  §  3.  Sec.  4738.  Filing  of  papers;  examination  of  reports.  The 
bank  commissioner  shall  file  all  papers  required  by  this  chapter, 
and  thoroughly  examine  the  annual  reports  submitted  by  foreign 
building  and  loan  associations. 

1896,  No.  S2,  §  3.  Sec.  4739.  Licenses.  If  said  commissioner,  after  examina- 
tion, becomes  satisfied  that  a  foreign  building  and  loan  associa- 
tion desiring  to  do  business  in  this  state  is  solvent  and  conducts 
its  business  according  to  law,  and  has  complied  with  the  provi- 
sions of  this  chapter,  he  may  issue  a  license  to  such  association 
until  the  first  day  of  January  following.  If  such  association  is 
found  insolvent,  or  is  being  illegally  conducted,  said  commis- 
sioner shall  refuse  to  issue  such  license.  In  case  of  the  refusal 
of  said  commissioner  to  grant  a  license  to  an  association  applying 
therefor,  that  has  complied  with  the  provisions  of  this  chapter, 
such  association  may  appeal  to  the  court  of  chancery  for  the 
county  of  Washington,  which  shall  have  jurisdiction. 

1896,  No.  82,  §  4.  Sec.  4740.  Annual  examinations.  Said  commissioner  shall 
annually,  by  himself  or  his  deputy,  make  an  examination  of  the 
securities,  records,  books  and  accounts  of  every  foreign  building 
and  loan  association  doing  business  in  this  state,  and  file  a  report 
of  such  examination  in  his  office. 

189G,  No.  82,  §  4.  Sec.  4741.  Order  for  discontinuance. of  unsafe  practices; 
suspension  of  license.  If  it  appears  to  said  commissioner  that 
a  foreign  building  and  loan  association  licensed  to  do  business 
in  this  state  has  violated  a  provision  of  its  charter,  or  is  conduct- 


Chap.  201.]         DUTIES    OF   BANK   COMMISSIONER.  919 

ing  its  business  in  an  unsafe  or  unauthorized  manner,  he  shall, 
by  an  order  under  his  hand,  addressed  to  such  association,  direct 
a  discontinuance  of  such  illegal  and  unsafe  practices.  When- 
ever it  appears  to  said  commissioner  that  it  is  unsafe  or  inex- 
pedient for  such  association  to  continue  doing  business  in  this 
state,  he  may  suspend  the  license  granted  to  such  association, 
and  apply  to  the  court  of  chancery  in  any  county  for  an  in- 
junction restraining  such  association  from  doing  business  in  this 
state ;  and  such  court  shall  have  power  to  grant  or  refuse  such 
injunction  according  to  the  usual  proceeding  in  equity,  after 
reasonable  notice  to  such  association  of  such  proceedings. 

Reciprocal  Provisions. 

Sec.  4742.  Application.  When,  by  the  laws  of  another  1896,  No.  82,  §  5. 
state  or  nation,  any  taxes,  fines,  penalties,  licenses,  fees,  deposits 
of  money  or  securities  or  other  obligations  or  prohibitions  are 
imposed  upon  building  and  loan  associations  of  this  state,  or 
upon  their  agents,  doing  business  in  such  other  state  or  nation, 
the  same  obligations  and  prohibitions  of  whatever  kind  shall  be 
imposed  on  building  and  loan  associations  of  such  other  state  or 
nation,  and  upon  their  agents,  doing  business  in  this  state,  so 
long  as  such  laws  continue  in  force. 


*■■ 


Gaylord  Bros. 

Makers 

Syracuse,  N.  Y. 

PAT.  JAN.  21,  1908 


3*2L<32-74- 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 


